8043.HK WACC - Weighted Average Cost of Capital

The WACC of Atlinks Group Ltd (8043.HK) is 5.1%.

The Cost of Equity of Atlinks Group Ltd (8043.HK) is 6.40%.

The Cost of Debt of Atlinks Group Ltd (8043.HK) is 6.55%.

	Range	Selected
Cost of equity	5.50% - 7.30%	6.40%
Tax rate	34.00% - 37.70%	35.85%
Cost of debt	5.00% - 8.10%	6.55%
WACC	4.2% - 6.0%	5.1%

WACC

8043.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.45	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	7.30%

Tax rate	34.00%	37.70%
Debt/Equity ratio	1.45	1.45
Cost of debt	5.00%	8.10%

After-tax WACC	4.2%	6.0%


Selected WACC	5.1%

8043.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 8043.HK:

cost_of_equity (6.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.45) + 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.