8022.HK WACC - Weighted Average Cost of Capital
The WACC of Evershine Group Holdings Ltd (8022.HK) is 6.4%.
| Range | Selected | |
| Cost of equity | 6.1% - 11.0% | 8.55% |
| Tax rate | 0.1% - 0.3% | 0.2% |
| Cost of debt | 5.4% - 7.0% | 6.2% |
| WACC | 5.5% - 7.4% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.55 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 11.0% |
| Tax rate | 0.1% | 0.3% |
| Debt/Equity ratio | 8.71 | 8.71 |
| Cost of debt | 5.4% | 7.0% |
| After-tax WACC | 5.5% | 7.4% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8022.HK | Evershine Group Holdings Ltd | 8.71 | 0.8 | 0.08 |
| 1581.HK | Progressive Path Group Holdings Ltd | 2.39 | 0.52 | 0.15 |
| 399.HK | Innovative Pharmaceutical Biotech Ltd | 2.54 | -0.16 | -0.04 |
| 8007.HK | Global Strategic Group Ltd | 2.54 | 1.54 | 0.44 |
| 803.HK | Prosperity International Holdings HK Ltd | 42.36 | 1.68 | 0.04 |
| 8162.HK | Loco Hong Kong Holdings Ltd | 0.06 | 0.02 | 0.02 |
| 8612.HK | World Super Holdings Ltd | 0.66 | 0.23 | 0.14 |
| 997.HK | Chinlink International Holdings Ltd | 55.31 | 1.44 | 0.03 |
| PASUKGB.KL | Pasukhas Group Bhd | 1.02 | 0.9 | 0.45 |
| WMG.KL | WMG Holdings Bhd | 0.65 | -0.32 | -0.19 |
| Low | High | |
| Unlevered beta | 0.03 | 0.11 |
| Relevered beta | 0.33 | 1.03 |
| Adjusted relevered beta | 0.55 | 1.02 |
8022.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 8022.HK:
cost_of_equity (8.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.55) + 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.