1933.HK WACC - Weighted Average Cost of Capital

The WACC of OneForce Holdings Ltd (1933.HK) is 9.5%.

The Cost of Equity of OneForce Holdings Ltd (1933.HK) is 15.55%.

The Cost of Debt of OneForce Holdings Ltd (1933.HK) is 7.60%.

	Range	Selected
Cost of equity	11.40% - 19.70%	15.55%
Tax rate	3.30% - 8.40%	5.85%
Cost of debt	7.00% - 8.20%	7.60%
WACC	8.0% - 10.9%	9.5%

WACC

1933.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.42	2.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	19.70%

Tax rate	3.30%	8.40%
Debt/Equity ratio	2.61	2.61
Cost of debt	7.00%	8.20%

After-tax WACC	8.0%	10.9%


Selected WACC	9.5%

1933.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 1933.HK:

cost_of_equity (15.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.42) + 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.