164.HK WACC - Weighted Average Cost of Capital

The WACC of China Baoli Technologies Holdings Ltd (164.HK) is 8.6%.

The Cost of Equity of China Baoli Technologies Holdings Ltd (164.HK) is 14.60%.

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

	Range	Selected
Cost of equity	10.80% - 18.40%	14.60%
Tax rate	0.80% - 1.30%	1.05%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.3% - 10.9%	8.6%

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	1.33	2.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	18.40%

Tax rate	0.80%	1.30%
Debt/Equity ratio	1.9	1.9
Cost of debt	4.00%	7.00%

After-tax WACC	6.3%	10.9%


Selected WACC	8.6%

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 (14.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.33) + 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.