8063.HK WACC - Weighted Average Cost of Capital

The WACC of Global Mastermind Holdings Ltd (8063.HK) is 7.7%.

The Cost of Equity of Global Mastermind Holdings Ltd (8063.HK) is 15.55%.

The Cost of Debt of Global Mastermind Holdings Ltd (8063.HK) is 7.05%.

	Range	Selected
Cost of equity	6.70% - 24.40%	15.55%
Tax rate	1.80% - 3.70%	2.75%
Cost of debt	7.00% - 7.10%	7.05%
WACC	6.9% - 8.6%	7.7%

WACC

8063.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.64	2.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	24.40%

Tax rate	1.80%	3.70%
Debt/Equity ratio	8.9	8.9
Cost of debt	7.00%	7.10%

After-tax WACC	6.9%	8.6%


Selected WACC	7.7%

8063.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 8063.HK:

cost_of_equity (15.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.64) + 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.