356.HK WACC - Weighted Average Cost of Capital

The WACC of DT Capital Ltd (356.HK) is 5.8%.

The Cost of Equity of DT Capital Ltd (356.HK) is 6.70%.

The Cost of Debt of DT Capital Ltd (356.HK) is 5.00%.

	Range	Selected
Cost of equity	5.60% - 7.80%	6.70%
Tax rate	0.80% - 1.40%	1.10%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.3% - 6.3%	5.8%

WACC

356.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.45	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	7.80%

Tax rate	0.80%	1.40%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	5.3%	6.3%


Selected WACC	5.8%

356.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 356.HK:

cost_of_equity (6.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.45) + 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.