1758.HK WACC - Weighted Average Cost of Capital

The WACC of Bojun Education Company Ltd (1758.HK) is 6.7%.

The Cost of Equity of Bojun Education Company Ltd (1758.HK) is 13.55%.

The Cost of Debt of Bojun Education Company Ltd (1758.HK) is 6.75%.

	Range	Selected
Cost of equity	9.70% - 17.40%	13.55%
Tax rate	3.50% - 4.60%	4.05%
Cost of debt	6.50% - 7.00%	6.75%
WACC	6.4% - 7.1%	6.7%

WACC

1758.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.15	1.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	17.40%

Tax rate	3.50%	4.60%
Debt/Equity ratio	25.06	25.06
Cost of debt	6.50%	7.00%

After-tax WACC	6.4%	7.1%


Selected WACC	6.7%

1758.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 1758.HK:

cost_of_equity (13.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.15) + 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.