FUZN.CN WACC - Weighted Average Cost of Capital

The WACC of High Fusion Inc (FUZN.CN) is 9.0%.

The Cost of Equity of High Fusion Inc (FUZN.CN) is 38.80%.

The Cost of Debt of High Fusion Inc (FUZN.CN) is 5.50%.

	Range	Selected
Cost of equity	31.70% - 45.90%	38.80%
Tax rate	0.50% - 0.60%	0.55%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.9% - 11.1%	9.0%

WACC

FUZN.CN WACC calculation

Category	Low	High

Long-term bond rate	3.6%	4.1%
Equity market risk premium	5.5%	6.5%
Adjusted beta	5.12	6.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	31.70%	45.90%

Tax rate	0.50%	0.60%
Debt/Equity ratio	8.46	8.46
Cost of debt	4.00%	7.00%

After-tax WACC	6.9%	11.1%


Selected WACC	9.0%

FUZN.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 FUZN.CN:

cost_of_equity (38.80%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (5.12) + 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.