1760.HK WACC - Weighted Average Cost of Capital

The WACC of Intron Technology Holdings Ltd (1760.HK) is 12.2%.

The Cost of Equity of Intron Technology Holdings Ltd (1760.HK) is 12.40%.

The Cost of Debt of Intron Technology Holdings Ltd (1760.HK) is 13.40%.

	Range	Selected
Cost of equity	8.90% - 15.90%	12.40%
Tax rate	8.80% - 11.20%	10.00%
Cost of debt	6.90% - 19.90%	13.40%
WACC	7.7% - 16.7%	12.2%

WACC

1760.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	1.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	15.90%

Tax rate	8.80%	11.20%
Debt/Equity ratio	0.84	0.84
Cost of debt	6.90%	19.90%

After-tax WACC	7.7%	16.7%


Selected WACC	12.2%

1760.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 1760.HK:

cost_of_equity (12.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1) + 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.