1669.HK WACC - Weighted Average Cost of Capital

The WACC of Global International Credit Group Ltd (1669.HK) is 7.5%.

The Cost of Equity of Global International Credit Group Ltd (1669.HK) is 7.50%.

The Cost of Debt of Global International Credit Group Ltd (1669.HK) is 5.00%.

	Range	Selected
Cost of equity	6.40% - 8.60%	7.50%
Tax rate	16.50% - 16.50%	16.50%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.4% - 8.6%	7.5%

WACC

1669.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.59	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	8.60%

Tax rate	16.50%	16.50%
Debt/Equity ratio	0	0
Cost of debt	5.00%	5.00%

After-tax WACC	6.4%	8.6%


Selected WACC	7.5%

1669.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 1669.HK:

cost_of_equity (7.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.59) + 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.