1715.HK WACC - Weighted Average Cost of Capital

The WACC of Miji International Holdings Ltd (1715.HK) is 9.4%.

The Cost of Equity of Miji International Holdings Ltd (1715.HK) is 12.80%.

The Cost of Debt of Miji International Holdings Ltd (1715.HK) is 7.80%.

	Range	Selected
Cost of equity	9.70% - 15.90%	12.80%
Tax rate	0.30% - 0.60%	0.45%
Cost of debt	7.00% - 8.60%	7.80%
WACC	7.8% - 10.9%	9.4%

WACC

1715.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.14	1.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	15.90%

Tax rate	0.30%	0.60%
Debt/Equity ratio	2.15	2.15
Cost of debt	7.00%	8.60%

After-tax WACC	7.8%	10.9%


Selected WACC	9.4%

1715.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 1715.HK:

cost_of_equity (12.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.14) + 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.