2222.HK
NVC International Holdings Ltd
Price:  
0.74 
HKD
Volume:  
20,000
China | Household Products

2222.HK WACC - Weighted Average Cost of Capital

The WACC of NVC International Holdings Ltd (2222.HK) is 8.9%.

The Cost of Equity of NVC International Holdings Ltd (2222.HK) is 9.05%.
The Cost of Debt of NVC International Holdings Ltd (2222.HK) is 6.85%.

RangeSelected
Cost of equity7.3% - 10.8%9.05%
Tax rate22.1% - 22.3%22.2%
Cost of debt4.0% - 9.7%6.85%
WACC7.2% - 10.7%8.9%
WACC

2222.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.740.99
Additional risk adjustments0.0%0.5%
Cost of equity7.3%10.8%
Tax rate22.1%22.3%
Debt/Equity ratio
0.020.02
Cost of debt4.0%9.7%
After-tax WACC7.2%10.7%
Selected WACC8.9%

2222.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 2222.HK:

cost_of_equity (9.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.74) + 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.