2448.HK WACC - Weighted Average Cost of Capital

The WACC of Space Group Holdings Ltd (2448.HK) is 5.6%.

The Cost of Equity of Space Group Holdings Ltd (2448.HK) is 12.85%.

The Cost of Debt of Space Group Holdings Ltd (2448.HK) is 5.85%.

	Range	Selected
Cost of equity	8.40% - 17.30%	12.85%
Tax rate	13.70% - 14.30%	14.00%
Cost of debt	4.70% - 7.00%	5.85%
WACC	4.4% - 6.8%	5.6%

WACC

2448.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.92	1.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	17.30%

Tax rate	13.70%	14.30%
Debt/Equity ratio	12.84	12.84
Cost of debt	4.70%	7.00%

After-tax WACC	4.4%	6.8%


Selected WACC	5.6%

2448.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 2448.HK:

cost_of_equity (12.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.92) + 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.