1737.HK
A & S Group (Holdings) Limited
Price:  
0.10 
HKD
Volume:  
570,000.00
Hong Kong | Air Freight & Logistics
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1737.HK WACC - Weighted Average Cost of Capital

The WACC of A & S Group (Holdings) Limited (1737.HK) is 6.3%.

The Cost of Equity of A & S Group (Holdings) Limited (1737.HK) is 5.90%.
The Cost of Debt of A & S Group (Holdings) Limited (1737.HK) is 7.25%.

Range Selected
Cost of equity 4.90% - 6.90% 5.90%
Tax rate 2.50% - 9.00% 5.75%
Cost of debt 7.00% - 7.50% 7.25%
WACC 5.7% - 6.9% 6.3%
WACC

1737.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.33 0.44
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.90% 6.90%
Tax rate 2.50% 9.00%
Debt/Equity ratio 0.72 0.72
Cost of debt 7.00% 7.50%
After-tax WACC 5.7% 6.9%
Selected WACC 6.3%

1737.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 1737.HK:

cost_of_equity (5.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + 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.