1753.HK WACC - Weighted Average Cost of Capital

The WACC of Duiba Group Ltd (1753.HK) is 8.9%.

The Cost of Equity of Duiba Group Ltd (1753.HK) is 24.15%.

The Cost of Debt of Duiba Group Ltd (1753.HK) is 5.65%.

	Range	Selected
Cost of equity	20.40% - 27.90%	24.15%
Tax rate	10.00% - 11.70%	10.85%
Cost of debt	4.30% - 7.00%	5.65%
WACC	7.2% - 10.6%	8.9%

WACC

1753.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	2.94	3.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.40%	27.90%

Tax rate	10.00%	11.70%
Debt/Equity ratio	3.9	3.9
Cost of debt	4.30%	7.00%

After-tax WACC	7.2%	10.6%


Selected WACC	8.9%

1753.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 1753.HK:

cost_of_equity (24.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.94) + 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.