1662.HK WACC - Weighted Average Cost of Capital

The WACC of Yee Hop Holdings Ltd (1662.HK) is 5.2%.

The Cost of Equity of Yee Hop Holdings Ltd (1662.HK) is 5.80%.

The Cost of Debt of Yee Hop Holdings Ltd (1662.HK) is 4.65%.

	Range	Selected
Cost of equity	4.90% - 6.70%	5.80%
Tax rate	20.90% - 29.60%	25.25%
Cost of debt	4.00% - 5.30%	4.65%
WACC	4.5% - 5.9%	5.2%

WACC

1662.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	0.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	6.70%

Tax rate	20.90%	29.60%
Debt/Equity ratio	0.35	0.35
Cost of debt	4.00%	5.30%

After-tax WACC	4.5%	5.9%


Selected WACC	5.2%

1662.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 1662.HK:

cost_of_equity (5.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.