8118.HK WACC - Weighted Average Cost of Capital

The WACC of Bortex Global Ltd (8118.HK) is 5.9%.

The Cost of Equity of Bortex Global Ltd (8118.HK) is 6.25%.

The Cost of Debt of Bortex Global Ltd (8118.HK) is 5.90%.

	Range	Selected
Cost of equity	5.30% - 7.20%	6.25%
Tax rate	7.10% - 16.50%	11.80%
Cost of debt	4.80% - 7.00%	5.90%
WACC	5.0% - 6.7%	5.9%

WACC

8118.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.41	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	7.20%

Tax rate	7.10%	16.50%
Debt/Equity ratio	0.52	0.52
Cost of debt	4.80%	7.00%

After-tax WACC	5.0%	6.7%


Selected WACC	5.9%

8118.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 8118.HK:

cost_of_equity (6.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.41) + 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.