8249.HK WACC - Weighted Average Cost of Capital

The WACC of Zhejiang RuiYuan Intelligent Control Technology Co Ltd (8249.HK) is 9.2%.

The Cost of Equity of Zhejiang RuiYuan Intelligent Control Technology Co Ltd (8249.HK) is 9.35%.

The Cost of Debt of Zhejiang RuiYuan Intelligent Control Technology Co Ltd (8249.HK) is 5.50%.

	Range	Selected
Cost of equity	7.90% - 10.80%	9.35%
Tax rate	0.10% - 0.60%	0.35%
Cost of debt	4.00% - 7.00%	5.50%
WACC	7.7% - 10.6%	9.2%

WACC

8249.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.84	0.99

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.80%

Tax rate	0.10%	0.60%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	7.00%

After-tax WACC	7.7%	10.6%


Selected WACC	9.2%

8249.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 8249.HK:

cost_of_equity (9.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.84) + 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.