213.HK WACC - Weighted Average Cost of Capital

The WACC of National Electronics Holdings Ltd (213.HK) is 10.5%.

The Cost of Equity of National Electronics Holdings Ltd (213.HK) is 9.95%.

The Cost of Debt of National Electronics Holdings Ltd (213.HK) is 13.95%.

	Range	Selected
Cost of equity	6.00% - 13.90%	9.95%
Tax rate	18.70% - 26.10%	22.40%
Cost of debt	5.00% - 22.90%	13.95%
WACC	4.2% - 16.7%	10.5%

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	0.52	1.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	13.90%

Tax rate	18.70%	26.10%
Debt/Equity ratio	15.9	15.9
Cost of debt	5.00%	22.90%

After-tax WACC	4.2%	16.7%


Selected WACC	10.5%

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 (9.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.52) + 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.