8168.HK WACC - Weighted Average Cost of Capital
The WACC of Amasse Capital Holdings Ltd (8168.HK) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.1% - 6.6% | 5.85% |
| Tax rate | 0.0% - 0.6% | 0.3% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.1% - 6.6% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.38 | 0.4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 6.6% |
| Tax rate | 0.0% | 0.6% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.1% | 6.6% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8168.HK | Amasse Capital Holdings Ltd | 0.03 | 0.07 | 0.07 |
| 290.HK | China Fortune Financial Group Ltd | 0.03 | 0.05 | 0.04 |
| 619.HK | South China Financial Holdings Ltd | 5.3 | 0.51 | 0.08 |
| 8001.HK | Orient Securities International Holdings Ltd | 0.01 | -1.73 | -1.71 |
| 8098.HK | CL Group (Holdings) Ltd | 0.12 | -0.03 | -0.03 |
| 812.HK | Southwest Securities International Securities Ltd | 1.26 | 0.27 | 0.12 |
| 8221.HK | PF Group Holdings Ltd | 1.03 | 0.68 | 0.34 |
| 8333.HK | Astrum Financial Holdings Ltd | 0.18 | 0.47 | 0.4 |
| 8350.HK | Excalibur Global Financial Holdings Ltd | 0.28 | 0.62 | 0.49 |
| 8540.HK | Victory Securities (Holdings) Company Ltd | 0.09 | 0.07 | 0.06 |
| Low | High | |
| Unlevered beta | 0.07 | 0.1 |
| Relevered beta | 0.07 | 0.1 |
| Adjusted relevered beta | 0.38 | 0.4 |
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.