8030.HK WACC - Weighted Average Cost of Capital

The WACC of Flying Financial Service Holdings Ltd (8030.HK) is 7.7%.

The Cost of Equity of Flying Financial Service Holdings Ltd (8030.HK) is 7.75%.

The Cost of Debt of Flying Financial Service Holdings Ltd (8030.HK) is 5.00%.

	Range	Selected
Cost of equity	6.30% - 9.20%	7.75%
Tax rate	22.00% - 35.40%	28.70%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.3% - 9.2%	7.7%

WACC

8030.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.57	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	9.20%

Tax rate	22.00%	35.40%
Debt/Equity ratio	0	0
Cost of debt	5.00%	5.00%

After-tax WACC	6.3%	9.2%


Selected WACC	7.7%

8030.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 8030.HK:

cost_of_equity (7.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.57) + 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.