3329.HK
BOCOM International Holdings Co Ltd
Price:  
0.68 
HKD
Volume:  
32,351,652.00
Hong Kong | Capital Markets
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3329.HK WACC - Weighted Average Cost of Capital

The WACC of BOCOM International Holdings Co Ltd (3329.HK) is 5.9%.

The Cost of Equity of BOCOM International Holdings Co Ltd (3329.HK) is 12.75%.
The Cost of Debt of BOCOM International Holdings Co Ltd (3329.HK) is 5.50%.

Range Selected
Cost of equity 8.10% - 17.40% 12.75%
Tax rate 1.10% - 4.10% 2.60%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.2% - 7.5% 5.9%
WACC

3329.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.87 1.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 17.40%
Tax rate 1.10% 4.10%
Debt/Equity ratio 13.27 13.27
Cost of debt 4.00% 7.00%
After-tax WACC 4.2% 7.5%
Selected WACC 5.9%

3329.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 3329.HK:

cost_of_equity (12.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.87) + 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.