6128.HK
Earthasia International Holdings Ltd
Price:  
0.19 
HKD
Volume:  
450,000.00
Hong Kong | Professional Services
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6128.HK WACC - Weighted Average Cost of Capital

The WACC of Earthasia International Holdings Ltd (6128.HK) is 5.7%.

The Cost of Equity of Earthasia International Holdings Ltd (6128.HK) is 6.20%.
The Cost of Debt of Earthasia International Holdings Ltd (6128.HK) is 5.55%.

Range Selected
Cost of equity 4.80% - 7.60% 6.20%
Tax rate 2.90% - 4.50% 3.70%
Cost of debt 4.10% - 7.00% 5.55%
WACC 4.4% - 7.1% 5.7%
WACC

6128.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.24 0.46
Additional risk adjustments 0.5% 1.0%
Cost of equity 4.80% 7.60%
Tax rate 2.90% 4.50%
Debt/Equity ratio 1.31 1.31
Cost of debt 4.10% 7.00%
After-tax WACC 4.4% 7.1%
Selected WACC 5.7%

6128.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 6128.HK:

cost_of_equity (6.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.24) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.