2158.HK WACC - Weighted Average Cost of Capital

The WACC of Yidu Tech Inc (2158.HK) is 10.1%.

The Cost of Equity of Yidu Tech Inc (2158.HK) is 10.20%.

The Cost of Debt of Yidu Tech Inc (2158.HK) is 8.50%.

	Range	Selected
Cost of equity	7.90% - 12.50%	10.20%
Tax rate	0.10% - 0.10%	0.10%
Cost of debt	8.50% - 8.50%	8.50%
WACC	7.9% - 12.4%	10.1%

WACC

2158.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.83	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	12.50%

Tax rate	0.10%	0.10%
Debt/Equity ratio	0.03	0.03
Cost of debt	8.50%	8.50%

After-tax WACC	7.9%	12.4%


Selected WACC	10.1%

2158.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 2158.HK:

cost_of_equity (10.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.83) + 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.