1478.HK WACC - Weighted Average Cost of Capital

The WACC of Q Technology (Group) Co Ltd (1478.HK) is 10.0%.

The Cost of Equity of Q Technology (Group) Co Ltd (1478.HK) is 13.50%.

The Cost of Debt of Q Technology (Group) Co Ltd (1478.HK) is 5.25%.

	Range	Selected
Cost of equity	11.90% - 15.10%	13.50%
Tax rate	18.90% - 29.30%	24.10%
Cost of debt	4.00% - 6.50%	5.25%
WACC	8.7% - 11.2%	10.0%

WACC

1478.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.51	1.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.10%

Tax rate	18.90%	29.30%
Debt/Equity ratio	0.58	0.58
Cost of debt	4.00%	6.50%

After-tax WACC	8.7%	11.2%


Selected WACC	10.0%

1478.HK's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 1478.HK:

cost_of_equity (13.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.51) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.