8043.HK WACC - Weighted Average Cost of Capital

The WACC of Atlinks Group Ltd (8043.HK) is 6.2%.

The Cost of Equity of Atlinks Group Ltd (8043.HK) is 6.25%.

The Cost of Debt of Atlinks Group Ltd (8043.HK) is 9.80%.

	Range	Selected
Cost of equity	5.40% - 7.10%	6.25%
Tax rate	34.00% - 37.70%	35.85%
Cost of debt	5.00% - 14.60%	9.80%
WACC	3.9% - 8.5%	6.2%

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	0.42	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	7.10%

Tax rate	34.00%	37.70%
Debt/Equity ratio	2.17	2.17
Cost of debt	5.00%	14.60%

After-tax WACC	3.9%	8.5%


Selected WACC	6.2%

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 (6.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.