1756.HK
Huali University Group Ltd
Price:  
0.57 
HKD
Volume:  
211,000.00
China | Diversified Consumer Services
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1756.HK WACC - Weighted Average Cost of Capital

The WACC of Huali University Group Ltd (1756.HK) is 6.5%.

The Cost of Equity of Huali University Group Ltd (1756.HK) is 14.85%.
The Cost of Debt of Huali University Group Ltd (1756.HK) is 4.35%.

Range Selected
Cost of equity 9.00% - 20.70% 14.85%
Tax rate 4.70% - 7.10% 5.90%
Cost of debt 4.10% - 4.60% 4.35%
WACC 5.0% - 7.9% 6.5%
WACC

1756.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.02 2.41
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 20.70%
Tax rate 4.70% 7.10%
Debt/Equity ratio 3.5 3.5
Cost of debt 4.10% 4.60%
After-tax WACC 5.0% 7.9%
Selected WACC 6.5%

1756.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 1756.HK:

cost_of_equity (14.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.02) + 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.