2031.HK WACC - Weighted Average Cost of Capital

The WACC of Ausupreme International Holdings Ltd (2031.HK) is 7.3%.

The Cost of Equity of Ausupreme International Holdings Ltd (2031.HK) is 7.55%.

The Cost of Debt of Ausupreme International Holdings Ltd (2031.HK) is 5.00%.

	Range	Selected
Cost of equity	6.20% - 8.90%	7.55%
Tax rate	17.60% - 33.80%	25.70%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.1% - 8.6%	7.3%

WACC

2031.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.56	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	8.90%

Tax rate	17.60%	33.80%
Debt/Equity ratio	0.06	0.06
Cost of debt	5.00%	5.00%

After-tax WACC	6.1%	8.6%


Selected WACC	7.3%

2031.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 2031.HK:

cost_of_equity (7.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.