1797.HK
Koolearn Technology Holding Ltd
Price:  
13.00 
HKD
Volume:  
9,994,668.00
China | Diversified Consumer Services
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1797.HK WACC - Weighted Average Cost of Capital

The WACC of Koolearn Technology Holding Ltd (1797.HK) is 7.5%.

The Cost of Equity of Koolearn Technology Holding Ltd (1797.HK) is 7.55%.
The Cost of Debt of Koolearn Technology Holding Ltd (1797.HK) is 5.00%.

Range Selected
Cost of equity 6.30% - 8.80% 7.55%
Tax rate 14.70% - 22.00% 18.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.2% - 8.8% 7.5%
WACC

1797.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.57 0.71
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.80%
Tax rate 14.70% 22.00%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 6.2% 8.8%
Selected WACC 7.5%

1797.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 1797.HK:

cost_of_equity (7.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.57) + 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.