757.HK WACC - Weighted Average Cost of Capital

The WACC of Solargiga Energy Holdings Ltd (757.HK) is 7.7%.

The Cost of Equity of Solargiga Energy Holdings Ltd (757.HK) is 25.50%.

The Cost of Debt of Solargiga Energy Holdings Ltd (757.HK) is 6.40%.

	Range	Selected
Cost of equity	22.00% - 29.00%	25.50%
Tax rate	12.10% - 23.20%	17.65%
Cost of debt	5.80% - 7.00%	6.40%
WACC	7.1% - 8.2%	7.7%

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	3.2	3.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.00%	29.00%

Tax rate	12.10%	23.20%
Debt/Equity ratio	7.25	7.25
Cost of debt	5.80%	7.00%

After-tax WACC	7.1%	8.2%


Selected WACC	7.7%

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 (25.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (3.2) + 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.