1775.HK WACC - Weighted Average Cost of Capital

The WACC of Bexcellent Group Holdings Ltd (1775.HK) is 5.4%.

The Cost of Equity of Bexcellent Group Holdings Ltd (1775.HK) is 5.55%.

The Cost of Debt of Bexcellent Group Holdings Ltd (1775.HK) is 5.50%.

	Range	Selected
Cost of equity	4.70% - 6.40%	5.55%
Tax rate	3.00% - 5.70%	4.35%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.2% - 6.5%	5.4%

WACC

1775.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.3	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.70%	6.40%

Tax rate	3.00%	5.70%
Debt/Equity ratio	1.36	1.36
Cost of debt	4.00%	7.00%

After-tax WACC	4.2%	6.5%


Selected WACC	5.4%

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 (5.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.3) + 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.