8113.HK WACC - Weighted Average Cost of Capital

The WACC of Hi-Level Technology Holdings Ltd (8113.HK) is 10.8%.

The Cost of Equity of Hi-Level Technology Holdings Ltd (8113.HK) is 8.10%.

The Cost of Debt of Hi-Level Technology Holdings Ltd (8113.HK) is 12.05%.

	Range	Selected
Cost of equity	6.60% - 9.60%	8.10%
Tax rate	0.80% - 1.50%	1.15%
Cost of debt	4.20% - 19.90%	12.05%
WACC	4.8% - 16.8%	10.8%

WACC

8113.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.62	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	9.60%

Tax rate	0.80%	1.50%
Debt/Equity ratio	2.54	2.54
Cost of debt	4.20%	19.90%

After-tax WACC	4.8%	16.8%


Selected WACC	10.8%

8113.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 8113.HK:

cost_of_equity (8.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.62) + 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.