1960.HK WACC - Weighted Average Cost of Capital

The WACC of TBK & Sons Holdings Ltd (1960.HK) is 7.9%.

The Cost of Equity of TBK & Sons Holdings Ltd (1960.HK) is 8.10%.

The Cost of Debt of TBK & Sons Holdings Ltd (1960.HK) is 6.35%.

	Range	Selected
Cost of equity	6.80% - 9.40%	8.10%
Tax rate	24.20% - 28.30%	26.25%
Cost of debt	5.70% - 7.00%	6.35%
WACC	6.7% - 9.1%	7.9%

WACC

1960.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.66	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	9.40%

Tax rate	24.20%	28.30%
Debt/Equity ratio	0.06	0.06
Cost of debt	5.70%	7.00%

After-tax WACC	6.7%	9.1%


Selected WACC	7.9%

1960.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 1960.HK:

cost_of_equity (8.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.66) + 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.