1555.HK WACC - Weighted Average Cost of Capital

The WACC of MIE Holdings Corp (1555.HK) is 4.2%.

The Cost of Equity of MIE Holdings Corp (1555.HK) is 28.40%.

The Cost of Debt of MIE Holdings Corp (1555.HK) is 4.25%.

	Range	Selected
Cost of equity	11.90% - 44.90%	28.40%
Tax rate	14.90% - 29.60%	22.25%
Cost of debt	4.00% - 4.50%	4.25%
WACC	3.7% - 4.8%	4.2%

WACC

1555.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	5.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	44.90%

Tax rate	14.90%	29.60%
Debt/Equity ratio	25.22	25.22
Cost of debt	4.00%	4.50%

After-tax WACC	3.7%	4.8%


Selected WACC	4.2%

1555.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 1555.HK:

cost_of_equity (28.40%) = 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.