1758.HK WACC - Weighted Average Cost of Capital
The WACC of Bojun Education Company Ltd (1758.HK) is 13.2%.
| Range | Selected | |
| Cost of equity | 8.3% - 11.5% | 9.9% |
| Tax rate | 5.2% - 7.1% | 6.15% |
| Cost of debt | 5.9% - 22.9% | 14.4% |
| WACC | 5.8% - 20.5% | 13.2% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.9 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 11.5% |
| Tax rate | 5.2% | 7.1% |
| Debt/Equity ratio | 11.25 | 11.25 |
| Cost of debt | 5.9% | 22.9% |
| After-tax WACC | 5.8% | 20.5% |
| Selected WACC | 13.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1758.HK | Bojun Education Company Ltd | 11.25 | -0.34 | -0.03 |
| 1449.HK | Leader Education Ltd | 8.02 | 0.6 | 0.07 |
| 1525.HK | Shanghai Gench Education Group Ltd | 0.94 | 0.22 | 0.12 |
| 1565.HK | Virscend Education Company Ltd | 3.47 | 0.33 | 0.08 |
| 1593.HK | Chen Lin Education Group Holdings Ltd | 2.02 | 0.03 | 0.01 |
| 1598.HK | China 21st Century Education Group Ltd | 8 | 0.7 | 0.08 |
| 1756.HK | Huali University Group Ltd | 3.43 | 0.28 | 0.07 |
| 1851.HK | China Gingko Education Group Company Ltd | 0.67 | 0.21 | 0.13 |
| 1871.HK | China Oriented International Holdings Ltd | 0.42 | 0.39 | 0.28 |
| 600455.SS | ButOne Information Corporation XiAn | 0.29 | 0.98 | 0.77 |
| Low | High | |
| Unlevered beta | 0.07 | 0.1 |
| Relevered beta | 0.85 | 1.13 |
| Adjusted relevered beta | 0.9 | 1.09 |
1758.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 1758.HK:
cost_of_equity (9.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.9) + 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.