1675.HK WACC - Weighted Average Cost of Capital

The WACC of AsiaInfo Technologies Ltd (1675.HK) is 11.8%.

The Cost of Equity of AsiaInfo Technologies Ltd (1675.HK) is 11.95%.

The Cost of Debt of AsiaInfo Technologies Ltd (1675.HK) is 4.30%.

	Range	Selected
Cost of equity	10.70% - 13.20%	11.95%
Tax rate	13.10% - 13.90%	13.50%
Cost of debt	4.00% - 4.60%	4.30%
WACC	10.5% - 13.1%	11.8%

WACC

1675.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.31	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.20%

Tax rate	13.10%	13.90%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	4.60%

After-tax WACC	10.5%	13.1%


Selected WACC	11.8%

1675.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 1675.HK:

cost_of_equity (11.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.31) + 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.