3383.HK
Agile Group Holdings Ltd
Price:  
0.44 
HKD
Volume:  
3,346,000.00
China | Real Estate Management & Development
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3383.HK WACC - Weighted Average Cost of Capital

The WACC of Agile Group Holdings Ltd (3383.HK) is 4.7%.

The Cost of Equity of Agile Group Holdings Ltd (3383.HK) is 94.40%.
The Cost of Debt of Agile Group Holdings Ltd (3383.HK) is 7.15%.

Range Selected
Cost of equity 71.70% - 117.10% 94.40%
Tax rate 35.70% - 41.30% 38.50%
Cost of debt 7.00% - 7.30% 7.15%
WACC 4.8% - 4.7% 4.7%
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 11.51 16.23
Additional risk adjustments 0.0% 0.5%
Cost of equity 71.70% 117.10%
Tax rate 35.70% 41.30%
Debt/Equity ratio 253.39 253.39
Cost of debt 7.00% 7.30%
After-tax WACC 4.8% 4.7%
Selected WACC 4.7%

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 (94.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (11.51) + 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.