8152.HK WACC - Weighted Average Cost of Capital
The WACC of M&L Holdings Group Ltd (8152.HK) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.2% - 6.8% | 6% |
| Tax rate | 2.1% - 7.3% | 4.7% |
| Cost of debt | 7.0% - 7.5% | 7.25% |
| WACC | 6.1% - 6.9% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.39 | 0.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 6.8% |
| Tax rate | 2.1% | 7.3% |
| Debt/Equity ratio | 1.28 | 1.28 |
| Cost of debt | 7.0% | 7.5% |
| After-tax WACC | 6.1% | 6.9% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8152.HK | M&L Holdings Group Ltd | 1.28 | 0.15 | 0.07 |
| 1102.HK | Enviro Energy International Holdings Ltd | 0.12 | 0.07 | 0.06 |
| 1205.HK | CITIC Resources Holdings Ltd | 0.63 | 0.82 | 0.51 |
| 1539.HK | Synergy Group Holdings International Ltd | 0.08 | -0.02 | -0.02 |
| 539800.BO | CHD CHEMICALS Ltd | 1.06 | -0.04 | -0.02 |
| 637.HK | Lee Kee Holdings Ltd | 0.13 | 0.16 | 0.14 |
| 731.HK | Samson Paper Holdings Ltd | 2.15 | 0.11 | 0.03 |
| 8162.HK | Loco Hong Kong Holdings Ltd | 0.06 | -0.19 | -0.18 |
| 8612.HK | World Super Holdings Ltd | 0.56 | 0.06 | 0.04 |
| 990.HK | Theme International Holdings Ltd | 0.03 | 1.04 | 1.01 |
| Low | High | |
| Unlevered beta | 0.04 | 0.06 |
| Relevered beta | 0.09 | 0.13 |
| Adjusted relevered beta | 0.39 | 0.42 |
8152.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 8152.HK:
cost_of_equity (6.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.