73.HK
Asian Citrus Holdings Ltd
Price:  
2.33 
HKD
Volume:  
9,250
Hong Kong | Wholesale Trade

73.HK WACC - Weighted Average Cost of Capital

The WACC of Asian Citrus Holdings Ltd (73.HK) is 6.0%.

The Cost of Equity of Asian Citrus Holdings Ltd (73.HK) is 5.95%.
The Cost of Debt of Asian Citrus Holdings Ltd (73.HK) is 7%.

RangeSelected
Cost of equity5.1% - 6.8%5.95%
Tax rate5.5% - 15.3%10.4%
Cost of debt7.0% - 7.0%7%
WACC5.1% - 6.8%6.0%
WACC

73.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.380.43
Additional risk adjustments0.0%0.5%
Cost of equity5.1%6.8%
Tax rate5.5%15.3%
Debt/Equity ratio
00
Cost of debt7.0%7.0%
After-tax WACC5.1%6.8%
Selected WACC6.0%

73.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 73.HK:

cost_of_equity (5.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.38) + 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.