8092.HK WACC - Weighted Average Cost of Capital

The WACC of ITE (Holdings) Ltd (8092.HK) is 8.5%.

The Cost of Equity of ITE (Holdings) Ltd (8092.HK) is 8.55%.

The Cost of Debt of ITE (Holdings) Ltd (8092.HK) is 6.35%.

	Range	Selected
Cost of equity	6.40% - 10.70%	8.55%
Tax rate	0.90% - 1.70%	1.30%
Cost of debt	4.00% - 8.70%	6.35%
WACC	6.4% - 10.6%	8.5%

WACC

8092.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.6	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	10.70%

Tax rate	0.90%	1.70%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	8.70%

After-tax WACC	6.4%	10.6%


Selected WACC	8.5%

8092.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 8092.HK:

cost_of_equity (8.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.6) + 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.