341.HK
Cafe De Coral Holdings Ltd
Price:  
7.16 
HKD
Volume:  
1,526,606.00
Hong Kong | Hotels, Restaurants & Leisure
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

341.HK WACC - Weighted Average Cost of Capital

The WACC of Cafe De Coral Holdings Ltd (341.HK) is 5.8%.

The Cost of Equity of Cafe De Coral Holdings Ltd (341.HK) is 7.35%.
The Cost of Debt of Cafe De Coral Holdings Ltd (341.HK) is 4.25%.

Range Selected
Cost of equity 6.30% - 8.40% 7.35%
Tax rate 19.50% - 27.70% 23.60%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.1% - 6.5% 5.8%
WACC

341.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 0.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.40%
Tax rate 19.50% 27.70%
Debt/Equity ratio 0.59 0.59
Cost of debt 4.00% 4.50%
After-tax WACC 5.1% 6.5%
Selected WACC 5.8%

341.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 341.HK:

cost_of_equity (7.35%) = 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.