757.HK WACC - Weighted Average Cost of Capital

The WACC of Solargiga Energy Holdings Ltd (757.HK) is 8.7%.

The Cost of Equity of Solargiga Energy Holdings Ltd (757.HK) is 22.95%.

The Cost of Debt of Solargiga Energy Holdings Ltd (757.HK) is 6.00%.

	Range	Selected
Cost of equity	18.70% - 27.20%	22.95%
Tax rate	12.10% - 23.20%	17.65%
Cost of debt	5.00% - 7.00%	6.00%
WACC	7.4% - 10.1%	8.7%

WACC

757.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	2.64	3.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.70%	27.20%

Tax rate	12.10%	23.20%
Debt/Equity ratio	3.65	3.65
Cost of debt	5.00%	7.00%

After-tax WACC	7.4%	10.1%


Selected WACC	8.7%

757.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 757.HK:

cost_of_equity (22.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.64) + 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.