8023.HK
Kwong Man Kee Group Ltd
Price:  
0.3 
HKD
Volume:  
48,000
Hong Kong | Construction & Engineering

8023.HK WACC - Weighted Average Cost of Capital

The WACC of Kwong Man Kee Group Ltd (8023.HK) is 6.1%.

The Cost of Equity of Kwong Man Kee Group Ltd (8023.HK) is 6.3%.
The Cost of Debt of Kwong Man Kee Group Ltd (8023.HK) is 4.25%.

RangeSelected
Cost of equity5.3% - 7.3%6.3%
Tax rate18.4% - 19.5%18.95%
Cost of debt4.0% - 4.5%4.25%
WACC5.2% - 7.1%6.1%
WACC

8023.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.240.34
Additional risk adjustments1.0%1.5%
Cost of equity5.3%7.3%
Tax rate18.4%19.5%
Debt/Equity ratio
0.050.05
Cost of debt4.0%4.5%
After-tax WACC5.2%7.1%
Selected WACC6.1%

8023.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 8023.HK:

cost_of_equity (6.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.24) + risk_adjustments (1.25%)

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