213.HK WACC - Weighted Average Cost of Capital

The WACC of National Electronics Holdings Ltd (213.HK) is 11.3%.

The Cost of Equity of National Electronics Holdings Ltd (213.HK) is 8.05%.

The Cost of Debt of National Electronics Holdings Ltd (213.HK) is 13.45%.

	Range	Selected
Cost of equity	6.70% - 9.40%	8.05%
Tax rate	6.30% - 15.30%	10.80%
Cost of debt	4.00% - 22.90%	13.45%
WACC	4.0% - 18.7%	11.3%

WACC

213.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.64	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	9.40%

Tax rate	6.30%	15.30%
Debt/Equity ratio	14.01	14.01
Cost of debt	4.00%	22.90%

After-tax WACC	4.0%	18.7%


Selected WACC	11.3%

213.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 213.HK:

cost_of_equity (8.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.64) + 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.