1949.HK WACC - Weighted Average Cost of Capital

The WACC of Platt Nera International Ltd (1949.HK) is 7.7%.

The Cost of Equity of Platt Nera International Ltd (1949.HK) is 7.00%.

The Cost of Debt of Platt Nera International Ltd (1949.HK) is 11.95%.

	Range	Selected
Cost of equity	5.50% - 8.50%	7.00%
Tax rate	24.60% - 28.20%	26.40%
Cost of debt	4.00% - 19.90%	11.95%
WACC	4.4% - 11.0%	7.7%

WACC

1949.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.44	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	8.50%

Tax rate	24.60%	28.20%
Debt/Equity ratio	0.78	0.78
Cost of debt	4.00%	19.90%

After-tax WACC	4.4%	11.0%


Selected WACC	7.7%

1949.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 1949.HK:

cost_of_equity (7.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.44) + 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.