483.HK WACC - Weighted Average Cost of Capital

The WACC of Bauhaus International (Holdings) Ltd (483.HK) is 9.1%.

The Cost of Equity of Bauhaus International (Holdings) Ltd (483.HK) is 9.25%.

The Cost of Debt of Bauhaus International (Holdings) Ltd (483.HK) is 9.30%.

	Range	Selected
Cost of equity	7.40% - 11.10%	9.25%
Tax rate	2.20% - 6.30%	4.25%
Cost of debt	7.20% - 11.40%	9.30%
WACC	7.2% - 10.9%	9.1%

WACC

483.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.75	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.40%	11.10%

Tax rate	2.20%	6.30%
Debt/Equity ratio	0.71	0.71
Cost of debt	7.20%	11.40%

After-tax WACC	7.2%	10.9%


Selected WACC	9.1%

483.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 483.HK:

cost_of_equity (9.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.75) + 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.