1483.HK WACC - Weighted Average Cost of Capital

The WACC of U Banquet Group Holding Ltd (1483.HK) is 14.8%.

The Cost of Equity of U Banquet Group Holding Ltd (1483.HK) is 6.30%.

The Cost of Debt of U Banquet Group Holding Ltd (1483.HK) is 81.00%.

	Range	Selected
Cost of equity	5.40% - 7.20%	6.30%
Tax rate	11.50% - 15.50%	13.50%
Cost of debt	7.00% - 155.00%	81.00%
WACC	5.5% - 24.0%	14.8%

WACC

1483.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.35	0.4

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.40%	7.20%

Tax rate	11.50%	15.50%
Debt/Equity ratio	0.16	0.16
Cost of debt	7.00%	155.00%

After-tax WACC	5.5%	24.0%


Selected WACC	14.8%

1483.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 1483.HK:

cost_of_equity (6.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.35) + risk_adjustments (0.75%)

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