176.HK WACC - Weighted Average Cost of Capital

The WACC of Superactive Group Co Ltd (176.HK) is 5.7%.

The Cost of Equity of Superactive Group Co Ltd (176.HK) is 13.80%.

The Cost of Debt of Superactive Group Co Ltd (176.HK) is 5.50%.

	Range	Selected
Cost of equity	3.90% - 23.70%	13.80%
Tax rate	1.70% - 5.20%	3.45%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.9% - 7.5%	5.7%

WACC

176.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	-2	0.98

Additional risk adjustments	13.0%	13.5%
Cost of equity	3.90%	23.70%

Tax rate	1.70%	5.20%
Debt/Equity ratio	18.35	18.35
Cost of debt	4.00%	7.00%

After-tax WACC	3.9%	7.5%


Selected WACC	5.7%

176.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 176.HK:

cost_of_equity (13.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (-2) + risk_adjustments (13.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.