8168.HK
Amasse Capital Holdings Ltd
Price:  
0.05 
HKD
Volume:  
2,480,000
Hong Kong | Capital Markets

8168.HK WACC - Weighted Average Cost of Capital

The WACC of Amasse Capital Holdings Ltd (8168.HK) is 5.9%.

The Cost of Equity of Amasse Capital Holdings Ltd (8168.HK) is 5.85%.
The Cost of Debt of Amasse Capital Holdings Ltd (8168.HK) is 5.5%.

RangeSelected
Cost of equity5.1% - 6.6%5.85%
Tax rate0.0% - 0.6%0.3%
Cost of debt4.0% - 7.0%5.5%
WACC5.1% - 6.6%5.9%
WACC

8168.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.380.4
Additional risk adjustments0.0%0.5%
Cost of equity5.1%6.6%
Tax rate0.0%0.6%
Debt/Equity ratio
0.030.03
Cost of debt4.0%7.0%
After-tax WACC5.1%6.6%
Selected WACC5.9%

8168.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 8168.HK:

cost_of_equity (5.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.38) + 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.