2101.HK WACC - Weighted Average Cost of Capital

The WACC of Fulu Holdings Ltd (2101.HK) is 9.6%.

The Cost of Equity of Fulu Holdings Ltd (2101.HK) is 11.35%.

The Cost of Debt of Fulu Holdings Ltd (2101.HK) is 4.30%.

	Range	Selected
Cost of equity	9.30% - 13.40%	11.35%
Tax rate	7.60% - 12.00%	9.80%
Cost of debt	4.00% - 4.60%	4.30%
WACC	8.0% - 11.2%	9.6%

WACC

2101.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.08	1.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	13.40%

Tax rate	7.60%	12.00%
Debt/Equity ratio	0.32	0.32
Cost of debt	4.00%	4.60%

After-tax WACC	8.0%	11.2%


Selected WACC	9.6%

2101.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 2101.HK:

cost_of_equity (11.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.08) + 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.