947.HK WACC - Weighted Average Cost of Capital

The WACC of Mobi Development Co Ltd (947.HK) is 6.7%.

The Cost of Equity of Mobi Development Co Ltd (947.HK) is 8.50%.

The Cost of Debt of Mobi Development Co Ltd (947.HK) is 6.05%.

	Range	Selected
Cost of equity	7.20% - 9.80%	8.50%
Tax rate	10.10% - 15.40%	12.75%
Cost of debt	5.10% - 7.00%	6.05%
WACC	5.8% - 7.7%	6.7%

WACC

947.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.73	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.20%	9.80%

Tax rate	10.10%	15.40%
Debt/Equity ratio	1.22	1.22
Cost of debt	5.10%	7.00%

After-tax WACC	5.8%	7.7%


Selected WACC	6.7%

947.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 947.HK:

cost_of_equity (8.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.73) + 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.