8096.HK WACC - Weighted Average Cost of Capital

The WACC of Tasty Concepts Holding Ltd (8096.HK) is 6.1%.

The Cost of Equity of Tasty Concepts Holding Ltd (8096.HK) is 6.20%.

The Cost of Debt of Tasty Concepts Holding Ltd (8096.HK) is 5.55%.

	Range	Selected
Cost of equity	5.00% - 7.40%	6.20%
Tax rate	0.40% - 2.30%	1.35%
Cost of debt	4.10% - 7.00%	5.55%
WACC	4.9% - 7.4%	6.1%

WACC

8096.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.18	0.37

Additional risk adjustments	1.0%	1.5%
Cost of equity	5.00%	7.40%

Tax rate	0.40%	2.30%
Debt/Equity ratio	0.14	0.14
Cost of debt	4.10%	7.00%

After-tax WACC	4.9%	7.4%


Selected WACC	6.1%

8096.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 8096.HK:

cost_of_equity (6.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.18) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.