3773.HK WACC - Weighted Average Cost of Capital

The WACC of NNK Group Ltd (3773.HK) is 8.4%.

The Cost of Equity of NNK Group Ltd (3773.HK) is 9.55%.

The Cost of Debt of NNK Group Ltd (3773.HK) is 4.45%.

	Range	Selected
Cost of equity	6.70% - 12.40%	9.55%
Tax rate	21.10% - 24.00%	22.55%
Cost of debt	4.00% - 4.90%	4.45%
WACC	6.1% - 10.8%	8.4%

WACC

3773.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.65	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	12.40%

Tax rate	21.10%	24.00%
Debt/Equity ratio	0.23	0.23
Cost of debt	4.00%	4.90%

After-tax WACC	6.1%	10.8%


Selected WACC	8.4%

3773.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 3773.HK:

cost_of_equity (9.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.65) + 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.