6033.HK WACC - Weighted Average Cost of Capital

The WACC of Telecom Digital Holdings Ltd (6033.HK) is 9.0%.

The Cost of Equity of Telecom Digital Holdings Ltd (6033.HK) is 14.90%.

The Cost of Debt of Telecom Digital Holdings Ltd (6033.HK) is 7.95%.

	Range	Selected
Cost of equity	11.60% - 18.20%	14.90%
Tax rate	17.20% - 17.70%	17.45%
Cost of debt	4.50% - 11.40%	7.95%
WACC	6.1% - 11.9%	9.0%

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	1.47	2.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	18.20%

Tax rate	17.20%	17.70%
Debt/Equity ratio	2.41	2.41
Cost of debt	4.50%	11.40%

After-tax WACC	6.1%	11.9%


Selected WACC	9.0%

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 (14.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.47) + 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.