434.HK WACC - Weighted Average Cost of Capital

The WACC of Boyaa Interactive International Ltd (434.HK) is 9.8%.

The Cost of Equity of Boyaa Interactive International Ltd (434.HK) is 9.80%.

The Cost of Debt of Boyaa Interactive International Ltd (434.HK) is 13.80%.

	Range	Selected
Cost of equity	7.00% - 12.60%	9.80%
Tax rate	15.10% - 19.00%	17.05%
Cost of debt	4.00% - 23.60%	13.80%
WACC	7.0% - 12.6%	9.8%

WACC

434.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.69	1.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	12.60%

Tax rate	15.10%	19.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	23.60%

After-tax WACC	7.0%	12.6%


Selected WACC	9.8%

434.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 434.HK:

cost_of_equity (9.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.69) + 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.