8601.HK
Boltek Holdings Ltd
Price:  
0.26 
HKD
Volume:  
50,000
Hong Kong | Construction & Engineering

8601.HK WACC - Weighted Average Cost of Capital

The WACC of Boltek Holdings Ltd (8601.HK) is 7.1%.

The Cost of Equity of Boltek Holdings Ltd (8601.HK) is 7.25%.
The Cost of Debt of Boltek Holdings Ltd (8601.HK) is 4.65%.

RangeSelected
Cost of equity6.2% - 8.3%7.25%
Tax rate13.9% - 14.6%14.25%
Cost of debt4.0% - 5.3%4.65%
WACC6.1% - 8.1%7.1%
WACC

8601.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.560.63
Additional risk adjustments0.0%0.5%
Cost of equity6.2%8.3%
Tax rate13.9%14.6%
Debt/Equity ratio
0.040.04
Cost of debt4.0%5.3%
After-tax WACC6.1%8.1%
Selected WACC7.1%

8601.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 8601.HK:

cost_of_equity (7.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.