129.HK WACC - Weighted Average Cost of Capital

The WACC of Asia Standard International Group Ltd (129.HK) is 8.8%.

The Cost of Equity of Asia Standard International Group Ltd (129.HK) is 9.30%.

The Cost of Debt of Asia Standard International Group Ltd (129.HK) is 9.30%.

	Range	Selected
Cost of equity	7.50% - 11.10%	9.30%
Tax rate	3.90% - 5.80%	4.85%
Cost of debt	4.00% - 14.60%	9.30%
WACC	3.9% - 13.7%	8.8%

WACC

129.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.77	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	11.10%

Tax rate	3.90%	5.80%
Debt/Equity ratio	39.07	39.07
Cost of debt	4.00%	14.60%

After-tax WACC	3.9%	13.7%


Selected WACC	8.8%

129.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 129.HK:

cost_of_equity (9.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.77) + 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.