3383.HK WACC - Weighted Average Cost of Capital

The WACC of Agile Group Holdings Ltd (3383.HK) is 4.1%.

The Cost of Equity of Agile Group Holdings Ltd (3383.HK) is 11.90%.

The Cost of Debt of Agile Group Holdings Ltd (3383.HK) is 6.20%.

	Range	Selected
Cost of equity	9.70% - 14.10%	11.90%
Tax rate	35.70% - 41.30%	38.50%
Cost of debt	5.40% - 7.00%	6.20%
WACC	3.7% - 4.5%	4.1%

WACC

3383.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.14	1.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	14.10%

Tax rate	35.70%	41.30%
Debt/Equity ratio	23.86	23.86
Cost of debt	5.40%	7.00%

After-tax WACC	3.7%	4.5%


Selected WACC	4.1%

3383.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 3383.HK:

cost_of_equity (11.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.14) + 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.