1672.HK
Ascletis Pharma Inc
Price:  
9.85 
HKD
Volume:  
8,127,000
China | Biotechnology

1672.HK WACC - Weighted Average Cost of Capital

The WACC of Ascletis Pharma Inc (1672.HK) is 9.7%.

The Cost of Equity of Ascletis Pharma Inc (1672.HK) is 9.75%.
The Cost of Debt of Ascletis Pharma Inc (1672.HK) is 6%.

RangeSelected
Cost of equity8.1% - 11.4%9.75%
Tax rate22.1% - 22.3%22.2%
Cost of debt5.0% - 7.0%6%
WACC8.1% - 11.3%9.7%
WACC

1672.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.871.07
Additional risk adjustments0.0%0.5%
Cost of equity8.1%11.4%
Tax rate22.1%22.3%
Debt/Equity ratio
00
Cost of debt5.0%7.0%
After-tax WACC8.1%11.3%
Selected WACC9.7%

1672.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 1672.HK:

cost_of_equity (9.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.87) + 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.