483.HK WACC - Weighted Average Cost of Capital

The WACC of Bauhaus International (Holdings) Ltd (483.HK) is 6.4%.

The Cost of Equity of Bauhaus International (Holdings) Ltd (483.HK) is 6.55%.

The Cost of Debt of Bauhaus International (Holdings) Ltd (483.HK) is 6.70%.

	Range	Selected
Cost of equity	5.60% - 7.50%	6.55%
Tax rate	4.80% - 8.70%	6.75%
Cost of debt	5.30% - 8.10%	6.70%
WACC	5.4% - 7.5%	6.4%

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	0.46	0.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	7.50%

Tax rate	4.80%	8.70%
Debt/Equity ratio	0.88	0.88
Cost of debt	5.30%	8.10%

After-tax WACC	5.4%	7.5%


Selected WACC	6.4%

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 (6.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.46) + 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.