2369.HK WACC - Weighted Average Cost of Capital

The WACC of Coolpad Group Ltd (2369.HK) is 8.2%.

The Cost of Equity of Coolpad Group Ltd (2369.HK) is 13.20%.

The Cost of Debt of Coolpad Group Ltd (2369.HK) is 7.05%.

	Range	Selected
Cost of equity	9.00% - 17.40%	13.20%
Tax rate	2.00% - 4.00%	3.00%
Cost of debt	7.00% - 7.10%	7.05%
WACC	7.3% - 9.0%	8.2%

WACC

2369.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.03	1.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	17.40%

Tax rate	2.00%	4.00%
Debt/Equity ratio	3.75	3.75
Cost of debt	7.00%	7.10%

After-tax WACC	7.3%	9.0%


Selected WACC	8.2%

2369.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 2369.HK:

cost_of_equity (13.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.03) + 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.