35.HK WACC - Weighted Average Cost of Capital

The WACC of Far East Consortium International Ltd (35.HK) is 9.8%.

The Cost of Equity of Far East Consortium International Ltd (35.HK) is 13.10%.

The Cost of Debt of Far East Consortium International Ltd (35.HK) is 14.35%.

	Range	Selected
Cost of equity	9.70% - 16.50%	13.10%
Tax rate	29.70% - 35.10%	32.40%
Cost of debt	5.80% - 22.90%	14.35%
WACC	4.5% - 15.0%	9.8%

WACC

35.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.13	1.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	16.50%

Tax rate	29.70%	35.10%
Debt/Equity ratio	11.18	11.18
Cost of debt	5.80%	22.90%

After-tax WACC	4.5%	15.0%


Selected WACC	9.8%

35.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 35.HK:

cost_of_equity (13.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.13) + 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.