2308.HK
EVOC Intelligent Technology Co Ltd
Price:  
1.75 
HKD
Volume:  
40,389,200
China | Technology Hardware, Storage & Peripherals

2308.HK WACC - Weighted Average Cost of Capital

The WACC of EVOC Intelligent Technology Co Ltd (2308.HK) is 9.7%.

The Cost of Equity of EVOC Intelligent Technology Co Ltd (2308.HK) is 16.8%.
The Cost of Debt of EVOC Intelligent Technology Co Ltd (2308.HK) is 7.1%.

RangeSelected
Cost of equity14.3% - 19.3%16.8%
Tax rate16.0% - 19.4%17.7%
Cost of debt6.1% - 8.1%7.1%
WACC8.4% - 11.1%9.7%
WACC

2308.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta1.922.22
Additional risk adjustments0.0%0.5%
Cost of equity14.3%19.3%
Tax rate16.0%19.4%
Debt/Equity ratio
1.821.82
Cost of debt6.1%8.1%
After-tax WACC8.4%11.1%
Selected WACC9.7%

2308.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 2308.HK:

cost_of_equity (16.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.92) + 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.