1957.HK WACC - Weighted Average Cost of Capital

The WACC of MBV International Ltd (1957.HK) is 8.9%.

The Cost of Equity of MBV International Ltd (1957.HK) is 9.35%.

The Cost of Debt of MBV International Ltd (1957.HK) is 4.25%.

	Range	Selected
Cost of equity	7.80% - 10.90%	9.35%
Tax rate	29.80% - 31.20%	30.50%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.4% - 10.3%	8.9%

WACC

1957.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.83	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.90%

Tax rate	29.80%	31.20%
Debt/Equity ratio	0.09	0.09
Cost of debt	4.00%	4.50%

After-tax WACC	7.4%	10.3%


Selected WACC	8.9%

1957.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 1957.HK:

cost_of_equity (9.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.83) + 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.