1760.HK WACC - Weighted Average Cost of Capital

The WACC of Intron Technology Holdings Ltd (1760.HK) is 7.4%.

The Cost of Equity of Intron Technology Holdings Ltd (1760.HK) is 9.30%.

The Cost of Debt of Intron Technology Holdings Ltd (1760.HK) is 6.70%.

	Range	Selected
Cost of equity	6.20% - 12.40%	9.30%
Tax rate	6.00% - 8.40%	7.20%
Cost of debt	6.50% - 6.90%	6.70%
WACC	6.1% - 8.7%	7.4%

WACC

1760.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.55	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	12.40%

Tax rate	6.00%	8.40%
Debt/Equity ratio	1.61	1.61
Cost of debt	6.50%	6.90%

After-tax WACC	6.1%	8.7%


Selected WACC	7.4%

1760.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 1760.HK:

cost_of_equity (9.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.55) + 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.