150.HK WACC - Weighted Average Cost of Capital

The WACC of Hypebeast Ltd (150.HK) is 8.9%.

The Cost of Equity of Hypebeast Ltd (150.HK) is 9.30%.

The Cost of Debt of Hypebeast Ltd (150.HK) is 5.95%.

	Range	Selected
Cost of equity	8.00% - 10.60%	9.30%
Tax rate	27.40% - 30.50%	28.95%
Cost of debt	4.90% - 7.00%	5.95%
WACC	7.7% - 10.2%	8.9%

WACC

150.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.86	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	10.60%

Tax rate	27.40%	30.50%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.90%	7.00%

After-tax WACC	7.7%	10.2%


Selected WACC	8.9%

150.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 150.HK:

cost_of_equity (9.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.86) + 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.