372.HK WACC - Weighted Average Cost of Capital

The WACC of PT International Development Corporation Ltd (372.HK) is 48.0%.

The Cost of Equity of PT International Development Corporation Ltd (372.HK) is 9.35%.

The Cost of Debt of PT International Development Corporation Ltd (372.HK) is 52.50%.

	Range	Selected
Cost of equity	6.50% - 12.20%	9.35%
Tax rate	-% - -%	-%
Cost of debt	7.00% - 98.00%	52.50%
WACC	6.9% - 89.1%	48.0%

WACC

372.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.61	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	12.20%

Tax rate	-%	-%
Debt/Equity ratio	8.6	8.6
Cost of debt	7.00%	98.00%

After-tax WACC	6.9%	89.1%


Selected WACC	48.0%

372.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 372.HK:

cost_of_equity (9.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.61) + 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.