599.HK WACC - Weighted Average Cost of Capital

The WACC of E.Bon Holdings Ltd (599.HK) is 5.4%.

The Cost of Equity of E.Bon Holdings Ltd (599.HK) is 6.65%.

The Cost of Debt of E.Bon Holdings Ltd (599.HK) is 5.10%.

	Range	Selected
Cost of equity	4.90% - 8.40%	6.65%
Tax rate	19.00% - 22.30%	20.65%
Cost of debt	4.20% - 6.00%	5.10%
WACC	4.2% - 6.7%	5.4%

WACC

599.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.34	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	8.40%

Tax rate	19.00%	22.30%
Debt/Equity ratio	0.9	0.9
Cost of debt	4.20%	6.00%

After-tax WACC	4.2%	6.7%


Selected WACC	5.4%

599.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 599.HK:

cost_of_equity (6.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.