1967.HK WACC - Weighted Average Cost of Capital

The WACC of Confidence Intelligence Holdings Ltd (1967.HK) is 10.1%.

The Cost of Equity of Confidence Intelligence Holdings Ltd (1967.HK) is 10.80%.

The Cost of Debt of Confidence Intelligence Holdings Ltd (1967.HK) is 4.85%.

	Range	Selected
Cost of equity	9.40% - 12.20%	10.80%
Tax rate	12.00% - 16.70%	14.35%
Cost of debt	4.00% - 5.70%	4.85%
WACC	8.7% - 11.4%	10.1%

WACC

1967.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.09	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	12.20%

Tax rate	12.00%	16.70%
Debt/Equity ratio	0.12	0.12
Cost of debt	4.00%	5.70%

After-tax WACC	8.7%	11.4%


Selected WACC	10.1%

1967.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 1967.HK:

cost_of_equity (10.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.09) + 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.