1672.HK WACC - Weighted Average Cost of Capital
The WACC of Ascletis Pharma Inc (1672.HK) is 9.7%.
| Range | Selected | |
| Cost of equity | 8.1% - 11.4% | 9.75% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 5.0% - 7.0% | 6% |
| WACC | 8.1% - 11.3% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.87 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 11.4% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 7.0% |
| After-tax WACC | 8.1% | 11.3% |
| Selected WACC | 9.7% | |
| Low | High | |
| Unlevered beta | 0.8 | 1.11 |
| Relevered beta | 0.81 | 1.1 |
| Adjusted relevered beta | 0.87 | 1.07 |
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.