6033.HK WACC - Weighted Average Cost of Capital

The WACC of Telecom Digital Holdings Ltd (6033.HK) is 10.3%.

The Cost of Equity of Telecom Digital Holdings Ltd (6033.HK) is 11.40%.

The Cost of Debt of Telecom Digital Holdings Ltd (6033.HK) is 11.95%.

	Range	Selected
Cost of equity	7.30% - 15.50%	11.40%
Tax rate	16.90% - 17.70%	17.30%
Cost of debt	4.00% - 19.90%	11.95%
WACC	4.5% - 16.1%	10.3%

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	0.74	1.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	15.50%

Tax rate	16.90%	17.70%
Debt/Equity ratio	2.34	2.34
Cost of debt	4.00%	19.90%

After-tax WACC	4.5%	16.1%


Selected WACC	10.3%

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 (11.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.74) + 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.