8083.HK WACC - Weighted Average Cost of Capital
The WACC of China Youzan Ltd (8083.HK) is 10.0%.
| Range | Selected | |
| Cost of equity | 8.7% - 12.4% | 10.55% |
| Tax rate | 3.2% - 5.1% | 4.15% |
| Cost of debt | 6.5% - 7.0% | 6.75% |
| WACC | 8.4% - 11.6% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.97 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 12.4% |
| Tax rate | 3.2% | 5.1% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 6.5% | 7.0% |
| After-tax WACC | 8.4% | 11.6% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8083.HK | China Youzan Ltd | 0.15 | 2.24 | 1.96 |
| 4478.T | freee KK | 0.02 | 0.88 | 0.87 |
| 596.HK | Inspur International Ltd | 0 | 1.54 | 1.54 |
| 603039.SS | Shanghai Weaver Network Co Ltd | 0 | 1.53 | 1.53 |
| 688088.SS | ArcSoft Corp Ltd | 0 | 1.84 | 1.84 |
| 8018.HK | Finsoft Financial Investment Holdings Ltd | 0.34 | 0.04 | 0.03 |
| 8148.HK | Aurum Pacific (China) Group Ltd | 0 | 0.91 | 0.91 |
| 8290.HK | Ahsay Backup Software Development Co Ltd | 0.2 | 0.18 | 0.15 |
| 9399.T | Beat Holdings Ltd | 0.01 | -1.68 | -1.66 |
| ALU.AX | Altium Ltd | 0 | 0.79 | 0.79 |
| WTC.AX | WiseTech Global Ltd | 0 | 1.65 | 1.65 |
| Low | High | |
| Unlevered beta | 0.87 | 1.53 |
| Relevered beta | 0.96 | 1.33 |
| Adjusted relevered beta | 0.97 | 1.22 |
8083.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 8083.HK:
cost_of_equity (10.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.97) + 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.