1993.HK WACC - Weighted Average Cost of Capital

The WACC of Asiaray Media Group Ltd (1993.HK) is 12.3%.

The Cost of Equity of Asiaray Media Group Ltd (1993.HK) is 12.90%.

The Cost of Debt of Asiaray Media Group Ltd (1993.HK) is 13.45%.

	Range	Selected
Cost of equity	10.20% - 15.60%	12.90%
Tax rate	6.60% - 10.00%	8.30%
Cost of debt	4.00% - 22.90%	13.45%
WACC	4.9% - 19.6%	12.3%

WACC

1993.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.22	1.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	15.60%

Tax rate	6.60%	10.00%
Debt/Equity ratio	4.32	4.32
Cost of debt	4.00%	22.90%

After-tax WACC	4.9%	19.6%


Selected WACC	12.3%

1993.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 1993.HK:

cost_of_equity (12.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.22) + 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.