1888.HK
Kingboard Laminates Holdings Ltd
Price:  
11.14 
HKD
Volume:  
13,613,500.00
Hong Kong | Electronic Equipment, Instruments & Components
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1888.HK WACC - Weighted Average Cost of Capital

The WACC of Kingboard Laminates Holdings Ltd (1888.HK) is 6.6%.

The Cost of Equity of Kingboard Laminates Holdings Ltd (1888.HK) is 6.90%.
The Cost of Debt of Kingboard Laminates Holdings Ltd (1888.HK) is 6.05%.

Range Selected
Cost of equity 5.60% - 8.20% 6.90%
Tax rate 23.30% - 23.50% 23.40%
Cost of debt 4.00% - 8.10% 6.05%
WACC 5.3% - 8.0% 6.6%
WACC

1888.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.45 0.62
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 8.20%
Tax rate 23.30% 23.50%
Debt/Equity ratio 0.13 0.13
Cost of debt 4.00% 8.10%
After-tax WACC 5.3% 8.0%
Selected WACC 6.6%

1888.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 1888.HK:

cost_of_equity (6.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.45) + 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.