BYT.CN WACC - Weighted Average Cost of Capital

The WACC of BYT Holdings Ltd (BYT.CN) is 6.5%.

The Cost of Equity of BYT Holdings Ltd (BYT.CN) is 6.35%.

The Cost of Debt of BYT Holdings Ltd (BYT.CN) is 7.00%.

	Range	Selected
Cost of equity	5.40% - 7.30%	6.35%
Tax rate	1.50% - 2.90%	2.20%
Cost of debt	7.00% - 7.00%	7.00%
WACC	5.9% - 7.1%	6.5%

WACC

BYT.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.35	0.43

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.40%	7.30%

Tax rate	1.50%	2.90%
Debt/Equity ratio	0.43	0.43
Cost of debt	7.00%	7.00%

After-tax WACC	5.9%	7.1%


Selected WACC	6.5%

BYT.CN'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 BYT.CN:

cost_of_equity (6.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.35) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.