9968.HK WACC - Weighted Average Cost of Capital

The WACC of Huijing Holdings Co Ltd (9968.HK) is 6.3%.

The Cost of Equity of Huijing Holdings Co Ltd (9968.HK) is 30.40%.

The Cost of Debt of Huijing Holdings Co Ltd (9968.HK) is 6.80%.

	Range	Selected
Cost of equity	15.70% - 45.10%	30.40%
Tax rate	9.00% - 23.60%	16.30%
Cost of debt	6.60% - 7.00%	6.80%
WACC	6.3% - 6.3%	6.3%

WACC

9968.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	2.15	5.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.70%	45.10%

Tax rate	9.00%	23.60%
Debt/Equity ratio	39.71	39.71
Cost of debt	6.60%	7.00%

After-tax WACC	6.3%	6.3%


Selected WACC	6.3%

9968.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 9968.HK:

cost_of_equity (30.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.15) + 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.