1760.HK WACC - Weighted Average Cost of Capital
The WACC of Intron Technology Holdings Ltd (1760.HK) is 7.5%.
| Range | Selected | |
| Cost of equity | 6.5% - 12.4% | 9.45% |
| Tax rate | 6.0% - 8.4% | 7.2% |
| Cost of debt | 6.5% - 6.9% | 6.7% |
| WACC | 6.2% - 8.8% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.6 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 12.4% |
| Tax rate | 6.0% | 8.4% |
| Debt/Equity ratio | 1.5 | 1.5 |
| Cost of debt | 6.5% | 6.9% |
| After-tax WACC | 6.2% | 8.8% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1760.HK | Intron Technology Holdings Ltd | 1.5 | 1.72 | 0.72 |
| 002664.SZ | Changying Xinzhi Technology Co Ltd | 0.68 | 1.33 | 0.82 |
| 1148.HK | Xinchen China Power Holdings Ltd | 4.21 | 1.02 | 0.21 |
| 1269.HK | China First Capital Group Ltd | 51.63 | 0.77 | 0.02 |
| 179.HK | Johnson Electric Holdings Ltd | 0.27 | 0.75 | 0.6 |
| 2339.HK | Beijingwest Industries International Ltd | 0.9 | 0.97 | 0.53 |
| 305.HK | Wuling Motors Holdings Ltd | 1.94 | 1.81 | 0.65 |
| 48.HK | China Automotive Interior Decoration Holdings Ltd | 1.13 | -0.13 | -0.06 |
| 872.HK | TUS International Ltd | 0.82 | 0.22 | 0.13 |
| 900260.KQ | Rothwell International Co Ltd | 4.09 | 0.55 | 0.12 |
| Low | High | |
| Unlevered beta | 0.18 | 0.56 |
| Relevered beta | 0.4 | 1.33 |
| Adjusted relevered beta | 0.6 | 1.22 |
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 (9.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.6) + 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.