1775.HK WACC - Weighted Average Cost of Capital
The WACC of Bexcellent Group Holdings Ltd (1775.HK) is 5.3%.
| Range | Selected | |
| Cost of equity | 4.5% - 6.3% | 5.4% |
| Tax rate | 3.0% - 5.7% | 4.35% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.2% - 6.5% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.28 | 0.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.5% | 6.3% |
| Tax rate | 3.0% | 5.7% |
| Debt/Equity ratio | 1.18 | 1.18 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.2% | 6.5% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1775.HK | Bexcellent Group Holdings Ltd | 1.18 | -0.1 | -0.05 |
| 1082.HK | Hong Kong Education Intl Investments Ltd | 0.03 | -0.03 | -0.03 |
| 2371.HK | China Chuanglian Education Financial Group Ltd | 0.68 | 0.51 | 0.31 |
| 8055.HK | China E-Information Technology Group Ltd | 0.02 | 0.99 | 0.97 |
| 8160.HK | Goldway Education Group Ltd | 0.32 | -0.86 | -0.66 |
| 8363.HK | Sdm Group Holdings Ltd | 7.01 | -0.01 | 0 |
| AKG.AX | Academies Australasia Group Ltd | 2.68 | 0.13 | 0.04 |
| ICT.AX | iCollege Ltd | 0.16 | -0.28 | -0.24 |
| MINDA.KL | Minda Global Bhd | 0.85 | -0.25 | -0.14 |
| MTEDUCARE.NS | MT Educare Ltd | 9.3 | 0.63 | 0.06 |
| Low | High | |
| Unlevered beta | -0.04 | 0.01 |
| Relevered beta | -0.07 | 0.03 |
| Adjusted relevered beta | 0.28 | 0.35 |
1775.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 1775.HK:
cost_of_equity (5.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.28) + 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.