8083.HK WACC - Weighted Average Cost of Capital

The WACC of China Youzan Ltd (8083.HK) is 10.4%.

The Cost of Equity of China Youzan Ltd (8083.HK) is 11.00%.

The Cost of Debt of China Youzan Ltd (8083.HK) is 6.75%.

	Range	Selected
Cost of equity	8.70% - 13.30%	11.00%
Tax rate	3.20% - 5.10%	4.15%
Cost of debt	6.50% - 7.00%	6.75%
WACC	8.4% - 12.5%	10.4%

WACC

8083.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.97	1.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	13.30%

Tax rate	3.20%	5.10%
Debt/Equity ratio	0.13	0.13
Cost of debt	6.50%	7.00%

After-tax WACC	8.4%	12.5%


Selected WACC	10.4%

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 (11.00%) = 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.