2013.HK WACC - Weighted Average Cost of Capital

The WACC of Weimob Inc (2013.HK) is 11.4%.

The Cost of Equity of Weimob Inc (2013.HK) is 13.45%.

The Cost of Debt of Weimob Inc (2013.HK) is 6.85%.

	Range	Selected
Cost of equity	11.80% - 15.10%	13.45%
Tax rate	3.10% - 4.10%	3.60%
Cost of debt	6.70% - 7.00%	6.85%
WACC	10.2% - 12.5%	11.4%

WACC

2013.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.49	1.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	15.10%

Tax rate	3.10%	4.10%
Debt/Equity ratio	0.43	0.43
Cost of debt	6.70%	7.00%

After-tax WACC	10.2%	12.5%


Selected WACC	11.4%

2013.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 2013.HK:

cost_of_equity (13.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.49) + 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.