8136.HK WACC - Weighted Average Cost of Capital

The WACC of IMS Group Holdings Ltd (8136.HK) is 9.7%.

The Cost of Equity of IMS Group Holdings Ltd (8136.HK) is 9.90%.

The Cost of Debt of IMS Group Holdings Ltd (8136.HK) is 4.65%.

	Range	Selected
Cost of equity	7.70% - 12.10%	9.90%
Tax rate	15.20% - 15.70%	15.45%
Cost of debt	4.00% - 5.30%	4.65%
WACC	7.6% - 11.8%	9.7%

WACC

8136.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.81	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	12.10%

Tax rate	15.20%	15.70%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	5.30%

After-tax WACC	7.6%	11.8%


Selected WACC	9.7%

8136.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 8136.HK:

cost_of_equity (9.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.81) + 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.