2083.HK WACC - Weighted Average Cost of Capital

The WACC of Nature Home Holding Company Ltd (2083.HK) is 8.5%.

The Cost of Equity of Nature Home Holding Company Ltd (2083.HK) is 10.40%.

The Cost of Debt of Nature Home Holding Company Ltd (2083.HK) is 7.65%.

	Range	Selected
Cost of equity	8.80% - 12.00%	10.40%
Tax rate	22.50% - 22.60%	22.55%
Cost of debt	7.10% - 8.20%	7.65%
WACC	7.4% - 9.6%	8.5%

WACC

2083.HK WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.3%	6.3%
Adjusted beta	1.07	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	12.00%

Tax rate	22.50%	22.60%
Debt/Equity ratio	0.75	0.75
Cost of debt	7.10%	8.20%

After-tax WACC	7.4%	9.6%


Selected WACC	8.5%

2083.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 2083.HK:

cost_of_equity (10.40%) = risk_free_rate (3.25%) + equity_risk_premium (5.80%) * adjusted_beta (1.07) + 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.