2317.HK
Vedan International Holdings Ltd
Price:  
0.62 
HKD
Volume:  
96,000
Hong Kong | Food Products

2317.HK WACC - Weighted Average Cost of Capital

The WACC of Vedan International Holdings Ltd (2317.HK) is 6.7%.

The Cost of Equity of Vedan International Holdings Ltd (2317.HK) is 7.55%.
The Cost of Debt of Vedan International Holdings Ltd (2317.HK) is 4.25%.

RangeSelected
Cost of equity6.3% - 8.8%7.55%
Tax rate24.9% - 25.8%25.35%
Cost of debt4.0% - 4.5%4.25%
WACC5.7% - 7.8%6.7%
WACC

2317.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.580.71
Additional risk adjustments0.0%0.5%
Cost of equity6.3%8.8%
Tax rate24.9%25.8%
Debt/Equity ratio
0.240.24
Cost of debt4.0%4.5%
After-tax WACC5.7%7.8%
Selected WACC6.7%

2317.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 2317.HK:

cost_of_equity (7.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.58) + 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.