3308.HK WACC - Weighted Average Cost of Capital

The WACC of Golden Eagle Retail Group Ltd (3308.HK) is 8.2%.

The Cost of Equity of Golden Eagle Retail Group Ltd (3308.HK) is 12.00%.

The Cost of Debt of Golden Eagle Retail Group Ltd (3308.HK) is 4.25%.

	Range	Selected
Cost of equity	10.50% - 13.50%	12.00%
Tax rate	34.20% - 40.40%	37.30%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.3% - 9.1%	8.2%

WACC

3308.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.28	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.50%

Tax rate	34.20%	40.40%
Debt/Equity ratio	0.7	0.7
Cost of debt	4.00%	4.50%

After-tax WACC	7.3%	9.1%


Selected WACC	8.2%

3308.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 3308.HK:

cost_of_equity (12.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.28) + 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.