800.HK WACC - Weighted Average Cost of Capital

The WACC of A8 New Media Group Ltd (800.HK) is 8.5%.

The Cost of Equity of A8 New Media Group Ltd (800.HK) is 12.90%.

The Cost of Debt of A8 New Media Group Ltd (800.HK) is 5.00%.

	Range	Selected
Cost of equity	10.70% - 15.10%	12.90%
Tax rate	13.00% - 21.70%	17.35%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.5% - 9.5%	8.5%

WACC

800.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.31	1.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	15.10%

Tax rate	13.00%	21.70%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	7.5%	9.5%


Selected WACC	8.5%

800.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 800.HK:

cost_of_equity (12.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.31) + 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.