1545.HK
Design Capital Ltd
Price:  
0.08 
HKD
Volume:  
260,000.00
Singapore | Trading Companies & Distributors
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1545.HK WACC - Weighted Average Cost of Capital

The WACC of Design Capital Ltd (1545.HK) is 5.8%.

The Cost of Equity of Design Capital Ltd (1545.HK) is 6.45%.
The Cost of Debt of Design Capital Ltd (1545.HK) is 5.10%.

Range Selected
Cost of equity 5.20% - 7.70% 6.45%
Tax rate 18.60% - 19.90% 19.25%
Cost of debt 5.10% - 5.10% 5.10%
WACC 4.9% - 6.6% 5.8%
WACC

1545.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.4 0.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.20% 7.70%
Tax rate 18.60% 19.90%
Debt/Equity ratio 0.44 0.44
Cost of debt 5.10% 5.10%
After-tax WACC 4.9% 6.6%
Selected WACC 5.8%

1545.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 1545.HK:

cost_of_equity (6.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.4) + 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.