6033.HK WACC - Weighted Average Cost of Capital

The WACC of Telecom Digital Holdings Ltd (6033.HK) is 8.4%.

The Cost of Equity of Telecom Digital Holdings Ltd (6033.HK) is 10.30%.

The Cost of Debt of Telecom Digital Holdings Ltd (6033.HK) is 9.45%.

	Range	Selected
Cost of equity	7.10% - 13.50%	10.30%
Tax rate	17.80% - 19.20%	18.50%
Cost of debt	4.30% - 14.60%	9.45%
WACC	4.5% - 12.3%	8.4%

WACC

6033.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.71	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	13.50%

Tax rate	17.80%	19.20%
Debt/Equity ratio	2.82	2.82
Cost of debt	4.30%	14.60%

After-tax WACC	4.5%	12.3%


Selected WACC	8.4%

6033.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 6033.HK:

cost_of_equity (10.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.71) + 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.