9929.HK WACC - Weighted Average Cost of Capital

The WACC of Sem Holdings Ltd (9929.HK) is 6.2%.

The Cost of Equity of Sem Holdings Ltd (9929.HK) is 5.80%.

The Cost of Debt of Sem Holdings Ltd (9929.HK) is 11.80%.

	Range	Selected
Cost of equity	4.90% - 6.70%	5.80%
Tax rate	1.80% - 3.30%	2.55%
Cost of debt	7.00% - 16.60%	11.80%
WACC	5.0% - 7.3%	6.2%

WACC

9929.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.33	0.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	6.70%

Tax rate	1.80%	3.30%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.00%	16.60%

After-tax WACC	5.0%	7.3%


Selected WACC	6.2%

9929.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 9929.HK:

cost_of_equity (5.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + 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.