1570.HK WACC - Weighted Average Cost of Capital

The WACC of Weiye Holdings Ltd (1570.HK) is 10.5%.

The Cost of Equity of Weiye Holdings Ltd (1570.HK) is 16.35%.

The Cost of Debt of Weiye Holdings Ltd (1570.HK) is 12.15%.

	Range	Selected
Cost of equity	7.90% - 24.80%	16.35%
Tax rate	17.60% - 33.60%	25.60%
Cost of debt	4.40% - 19.90%	12.15%
WACC	4.7% - 16.2%	10.5%

WACC

1570.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.84	3.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	24.80%

Tax rate	17.60%	33.60%
Debt/Equity ratio	2.88	2.88
Cost of debt	4.40%	19.90%

After-tax WACC	4.7%	16.2%


Selected WACC	10.5%

1570.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 1570.HK:

cost_of_equity (16.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.84) + 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.