1757.HK
Affluent Foundation Holdings Ltd
Price:  
0.17 
HKD
Volume:  
20,000.00
Hong Kong | Construction & Engineering
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1757.HK WACC - Weighted Average Cost of Capital

The WACC of Affluent Foundation Holdings Ltd (1757.HK) is 6.3%.

The Cost of Equity of Affluent Foundation Holdings Ltd (1757.HK) is 6.40%.
The Cost of Debt of Affluent Foundation Holdings Ltd (1757.HK) is 5.50%.

Range Selected
Cost of equity 5.40% - 7.40% 6.40%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.3% - 7.3% 6.3%
WACC

1757.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.42 0.5
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 7.40%
Tax rate 22.10% 22.30%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.00% 7.00%
After-tax WACC 5.3% 7.3%
Selected WACC 6.3%

1757.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 1757.HK:

cost_of_equity (6.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.