833.HK WACC - Weighted Average Cost of Capital

The WACC of Alltronics Holdings Ltd (833.HK) is 6.3%.

The Cost of Equity of Alltronics Holdings Ltd (833.HK) is 8.95%.

The Cost of Debt of Alltronics Holdings Ltd (833.HK) is 5.15%.

	Range	Selected
Cost of equity	6.50% - 11.40%	8.95%
Tax rate	23.90% - 26.80%	25.35%
Cost of debt	4.10% - 6.20%	5.15%
WACC	4.7% - 7.9%	6.3%

WACC

833.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.6	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	11.40%

Tax rate	23.90%	26.80%
Debt/Equity ratio	1.05	1.05
Cost of debt	4.10%	6.20%

After-tax WACC	4.7%	7.9%


Selected WACC	6.3%

833.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 833.HK:

cost_of_equity (8.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.6) + 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.