2203.HK
Brainhole Technology Ltd
Price:  
0.2 
HKD
Volume:  
410,000
Hong Kong | Semiconductors & Semiconductor Equipment

2203.HK WACC - Weighted Average Cost of Capital

The WACC of Brainhole Technology Ltd (2203.HK) is 5.1%.

The Cost of Equity of Brainhole Technology Ltd (2203.HK) is 6.3%.
The Cost of Debt of Brainhole Technology Ltd (2203.HK) is 4.25%.

RangeSelected
Cost of equity5.1% - 7.5%6.3%
Tax rate6.9% - 9.2%8.05%
Cost of debt4.0% - 4.5%4.25%
WACC4.4% - 5.7%5.1%
WACC

2203.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.370.52
Additional risk adjustments0.0%0.5%
Cost of equity5.1%7.5%
Tax rate6.9%9.2%
Debt/Equity ratio
1.041.04
Cost of debt4.0%4.5%
After-tax WACC4.4%5.7%
Selected WACC5.1%

2203.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 2203.HK:

cost_of_equity (6.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.37) + 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.