164.HK WACC - Weighted Average Cost of Capital

The WACC of China Baoli Technologies Holdings Ltd (164.HK) is 6.5%.

The Cost of Equity of China Baoli Technologies Holdings Ltd (164.HK) is 7.55%.

The Cost of Debt of China Baoli Technologies Holdings Ltd (164.HK) is 5.50%.

	Range	Selected
Cost of equity	5.40% - 9.70%	7.55%
Tax rate	0.80% - 1.30%	1.05%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.6% - 8.3%	6.5%

WACC

164.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.34	0.77

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.40%	9.70%

Tax rate	0.80%	1.30%
Debt/Equity ratio	1.09	1.09
Cost of debt	4.00%	7.00%

After-tax WACC	4.6%	8.3%


Selected WACC	6.5%

164.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 164.HK:

cost_of_equity (7.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.