9918.HK WACC - Weighted Average Cost of Capital

The WACC of Wise Ally International Holdings Ltd (9918.HK) is 5.4%.

The Cost of Equity of Wise Ally International Holdings Ltd (9918.HK) is 12.25%.

The Cost of Debt of Wise Ally International Holdings Ltd (9918.HK) is 4.45%.

	Range	Selected
Cost of equity	9.70% - 14.80%	12.25%
Tax rate	24.70% - 39.40%	32.05%
Cost of debt	4.30% - 4.60%	4.45%
WACC	4.9% - 5.9%	5.4%

WACC

9918.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.14	1.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	14.80%

Tax rate	24.70%	39.40%
Debt/Equity ratio	2.9	2.9
Cost of debt	4.30%	4.60%

After-tax WACC	4.9%	5.9%


Selected WACC	5.4%

9918.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 9918.HK:

cost_of_equity (12.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.14) + 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.