3738.HK WACC - Weighted Average Cost of Capital

The WACC of Vobile Group Ltd (3738.HK) is 14.1%.

The Cost of Equity of Vobile Group Ltd (3738.HK) is 12.10%.

The Cost of Debt of Vobile Group Ltd (3738.HK) is 28.55%.

	Range	Selected
Cost of equity	9.60% - 14.60%	12.10%
Tax rate	30.70% - 43.30%	37.00%
Cost of debt	5.10% - 52.00%	28.55%
WACC	6.8% - 21.4%	14.1%

WACC

3738.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.12	1.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	14.60%

Tax rate	30.70%	43.30%
Debt/Equity ratio	0.83	0.83
Cost of debt	5.10%	52.00%

After-tax WACC	6.8%	21.4%


Selected WACC	14.1%

3738.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 3738.HK:

cost_of_equity (12.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.12) + 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.