2013.HK WACC - Weighted Average Cost of Capital

The WACC of Weimob Inc (2013.HK) is 11.9%.

The Cost of Equity of Weimob Inc (2013.HK) is 13.95%.

The Cost of Debt of Weimob Inc (2013.HK) is 6.85%.

	Range	Selected
Cost of equity	12.50% - 15.40%	13.95%
Tax rate	2.50% - 2.90%	2.70%
Cost of debt	6.70% - 7.00%	6.85%
WACC	10.8% - 13.0%	11.9%

WACC

2013.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.6	1.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	15.40%

Tax rate	2.50%	2.90%
Debt/Equity ratio	0.38	0.38
Cost of debt	6.70%	7.00%

After-tax WACC	10.8%	13.0%


Selected WACC	11.9%

2013.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 2013.HK:

cost_of_equity (13.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.6) + 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.