8043.HK WACC - Weighted Average Cost of Capital

The WACC of Atlinks Group Ltd (8043.HK) is 10.4%.

The Cost of Equity of Atlinks Group Ltd (8043.HK) is 11.55%.

The Cost of Debt of Atlinks Group Ltd (8043.HK) is 13.95%.

	Range	Selected
Cost of equity	9.50% - 13.60%	11.55%
Tax rate	30.20% - 33.40%	31.80%
Cost of debt	5.00% - 22.90%	13.95%
WACC	6.3% - 14.5%	10.4%

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	1.11	1.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	13.60%

Tax rate	30.20%	33.40%
Debt/Equity ratio	1.14	1.14
Cost of debt	5.00%	22.90%

After-tax WACC	6.3%	14.5%


Selected WACC	10.4%

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 (11.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.11) + 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.