2682.HK WACC - Weighted Average Cost of Capital

The WACC of Yun Lee Marine Group Holdings Ltd (2682.HK) is 7.6%.

The Cost of Equity of Yun Lee Marine Group Holdings Ltd (2682.HK) is 7.70%.

The Cost of Debt of Yun Lee Marine Group Holdings Ltd (2682.HK) is 4.25%.

	Range	Selected
Cost of equity	5.80% - 9.60%	7.70%
Tax rate	15.30% - 15.50%	15.40%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.7% - 9.4%	7.6%

WACC

2682.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.49	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	9.60%

Tax rate	15.30%	15.50%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	4.50%

After-tax WACC	5.7%	9.4%


Selected WACC	7.6%

2682.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 2682.HK:

cost_of_equity (7.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.49) + 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.