1679.HK WACC - Weighted Average Cost of Capital

The WACC of Risecomm Group Holdings Ltd (1679.HK) is 7.8%.

The Cost of Equity of Risecomm Group Holdings Ltd (1679.HK) is 30.45%.

The Cost of Debt of Risecomm Group Holdings Ltd (1679.HK) is 5.50%.

	Range	Selected
Cost of equity	26.30% - 34.60%	30.45%
Tax rate	12.30% - 14.90%	13.60%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.2% - 9.4%	7.8%

WACC

1679.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	3.92	4.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.30%	34.60%

Tax rate	12.30%	14.90%
Debt/Equity ratio	7.35	7.35
Cost of debt	4.00%	7.00%

After-tax WACC	6.2%	9.4%


Selected WACC	7.8%

1679.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 1679.HK:

cost_of_equity (30.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (3.92) + 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.