1888.HK
Kingboard Laminates Holdings Ltd
Price:  
10.84 
HKD
Volume:  
12,719,680
Hong Kong | Electronic Equipment, Instruments & Components

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 6.9%.
The Cost of Debt of Kingboard Laminates Holdings Ltd (1888.HK) is 6.05%.

RangeSelected
Cost of equity5.6% - 8.2%6.9%
Tax rate23.3% - 23.5%23.4%
Cost of debt4.0% - 8.1%6.05%
WACC5.3% - 8.0%6.6%
WACC

1888.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.450.62
Additional risk adjustments0.0%0.5%
Cost of equity5.6%8.2%
Tax rate23.3%23.5%
Debt/Equity ratio
0.130.13
Cost of debt4.0%8.1%
After-tax WACC5.3%8.0%
Selected WACC6.6%

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.