1532.HK WACC - Weighted Average Cost of Capital

The WACC of China Partytime Culture Holdings Ltd (1532.HK) is 6.5%.

The Cost of Equity of China Partytime Culture Holdings Ltd (1532.HK) is 6.30%.

The Cost of Debt of China Partytime Culture Holdings Ltd (1532.HK) is 9.65%.

	Range	Selected
Cost of equity	5.20% - 7.40%	6.30%
Tax rate	11.70% - 19.50%	15.60%
Cost of debt	7.00% - 12.30%	9.65%
WACC	5.3% - 7.7%	6.5%

WACC

1532.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.3	0.44

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.20%	7.40%

Tax rate	11.70%	19.50%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.00%	12.30%

After-tax WACC	5.3%	7.7%


Selected WACC	6.5%

1532.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 1532.HK:

cost_of_equity (6.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.3) + 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.