789.HK WACC - Weighted Average Cost of Capital

The WACC of Artini Holdings Ltd (789.HK) is 6.3%.

The Cost of Equity of Artini Holdings Ltd (789.HK) is 6.15%.

The Cost of Debt of Artini Holdings Ltd (789.HK) is 14.50%.

	Range	Selected
Cost of equity	5.30% - 7.00%	6.15%
Tax rate	4.30% - 10.80%	7.55%
Cost of debt	7.00% - 22.00%	14.50%
WACC	5.3% - 7.2%	6.3%

WACC

789.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.33	0.38

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.30%	7.00%

Tax rate	4.30%	10.80%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.00%	22.00%

After-tax WACC	5.3%	7.2%


Selected WACC	6.3%

789.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 789.HK:

cost_of_equity (6.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.