8067.HK WACC - Weighted Average Cost of Capital

The WACC of Oriental University City Holdings HK Ltd (8067.HK) is 8.2%.

The Cost of Equity of Oriental University City Holdings HK Ltd (8067.HK) is 24.95%.

The Cost of Debt of Oriental University City Holdings HK Ltd (8067.HK) is 6.45%.

	Range	Selected
Cost of equity	18.90% - 31.00%	24.95%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	6.40% - 6.50%	6.45%
WACC	7.2% - 9.2%	8.2%

WACC

8067.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	2.68	3.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.90%	31.00%

Tax rate	22.10%	22.30%
Debt/Equity ratio	5.29	5.29
Cost of debt	6.40%	6.50%

After-tax WACC	7.2%	9.2%


Selected WACC	8.2%

8067.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 8067.HK:

cost_of_equity (24.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.68) + 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.