8091.HK WACC - Weighted Average Cost of Capital
The WACC of OOH Holdings Ltd (8091.HK) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.4% - 9.5% | 7.45% |
| Tax rate | 1.0% - 1.6% | 1.3% |
| Cost of debt | 4.3% - 7.0% | 5.65% |
| WACC | 4.7% - 7.9% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.42 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 9.5% |
| Tax rate | 1.0% | 1.6% |
| Debt/Equity ratio | 1.68 | 1.68 |
| Cost of debt | 4.3% | 7.0% |
| After-tax WACC | 4.7% | 7.9% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8091.HK | OOH Holdings Ltd | 1.68 | 0.62 | 0.23 |
| 1716.HK | Most Kwai Chung Ltd | 0.01 | 0.66 | 0.65 |
| 1993.HK | Asiaray Media Group Ltd | 3.51 | 0.31 | 0.07 |
| 205.HK | SEEC Media Group Ltd | 0.19 | 1.74 | 1.46 |
| 550.HK | KK Culture Holdings Limited | 0.03 | 0.48 | 0.47 |
| 8093.HK | Million Stars Holdings Ltd | 0.16 | 0.03 | 0.02 |
| 8112.HK | Cornerstone Financial Holdings Ltd | 0.3 | 0.41 | 0.32 |
| 8121.HK | Guru Online (Holdings) Ltd | 0.21 | 0.02 | 0.02 |
| 8401.HK | Stream Ideas Group Ltd | 0.01 | -0.55 | -0.54 |
| AMEDIA.KL | Asia Media Group Bhd | 0.04 | -1.26 | -1.2 |
| Low | High | |
| Unlevered beta | 0.05 | 0.27 |
| Relevered beta | 0.13 | 0.72 |
| Adjusted relevered beta | 0.42 | 0.81 |
8091.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 8091.HK:
cost_of_equity (7.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.