382.HK WACC - Weighted Average Cost of Capital

The WACC of Edvantage Group Holdings Ltd (382.HK) is 9.1%.

The Cost of Equity of Edvantage Group Holdings Ltd (382.HK) is 13.75%.

The Cost of Debt of Edvantage Group Holdings Ltd (382.HK) is 5.05%.

	Range	Selected
Cost of equity	11.30% - 16.20%	13.75%
Tax rate	1.00% - 1.90%	1.45%
Cost of debt	4.00% - 6.10%	5.05%
WACC	7.4% - 10.8%	9.1%

WACC

382.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.41	1.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	16.20%

Tax rate	1.00%	1.90%
Debt/Equity ratio	1.13	1.13
Cost of debt	4.00%	6.10%

After-tax WACC	7.4%	10.8%


Selected WACC	9.1%

382.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 382.HK:

cost_of_equity (13.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.41) + 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.