2232.HK WACC - Weighted Average Cost of Capital

The WACC of Crystal International Group Ltd (2232.HK) is 7.2%.

The Cost of Equity of Crystal International Group Ltd (2232.HK) is 7.20%.

The Cost of Debt of Crystal International Group Ltd (2232.HK) is 6.15%.

	Range	Selected
Cost of equity	6.30% - 8.10%	7.20%
Tax rate	17.50% - 18.80%	18.15%
Cost of debt	4.00% - 8.30%	6.15%
WACC	6.3% - 8.1%	7.2%

WACC

2232.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.57	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.10%

Tax rate	17.50%	18.80%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	8.30%

After-tax WACC	6.3%	8.1%


Selected WACC	7.2%

2232.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 2232.HK:

cost_of_equity (7.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.57) + 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.