8445.HK WACC - Weighted Average Cost of Capital

The WACC of Noble Engineering Group Holdings Ltd (8445.HK) is 5.6%.

The Cost of Equity of Noble Engineering Group Holdings Ltd (8445.HK) is 5.55%.

The Cost of Debt of Noble Engineering Group Holdings Ltd (8445.HK) is 8.05%.

	Range	Selected
Cost of equity	4.60% - 6.50%	5.55%
Tax rate	1.20% - 2.90%	2.05%
Cost of debt	7.00% - 9.10%	8.05%
WACC	4.6% - 6.5%	5.6%

WACC

8445.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.28	0.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.60%	6.50%

Tax rate	1.20%	2.90%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.00%	9.10%

After-tax WACC	4.6%	6.5%


Selected WACC	5.6%

8445.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 8445.HK:

cost_of_equity (5.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.28) + 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.