732.HK WACC - Weighted Average Cost of Capital

The WACC of Truly International Holdings Ltd (732.HK) is 6.6%.

The Cost of Equity of Truly International Holdings Ltd (732.HK) is 8.80%.

The Cost of Debt of Truly International Holdings Ltd (732.HK) is 6.80%.

	Range	Selected
Cost of equity	6.70% - 10.90%	8.80%
Tax rate	16.80% - 18.30%	17.55%
Cost of debt	5.50% - 8.10%	6.80%
WACC	5.3% - 8.0%	6.6%

WACC

732.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.64	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	10.90%

Tax rate	16.80%	18.30%
Debt/Equity ratio	2.16	2.16
Cost of debt	5.50%	8.10%

After-tax WACC	5.3%	8.0%


Selected WACC	6.6%

732.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 732.HK:

cost_of_equity (8.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.64) + 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.