8186.HK WACC - Weighted Average Cost of Capital
The WACC of M-Resources Group Ltd (8186.HK) is 7.9%.
| Range | Selected | |
| Cost of equity | 5.0% - 7.0% | 6% |
| Tax rate | 8.4% - 20.8% | 14.6% |
| Cost of debt | 22.9% - 1315.2% | 669.05% |
| WACC | 5.1% - 10.8% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.36 | 0.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 7.0% |
| Tax rate | 8.4% | 20.8% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 22.9% | 1315.2% |
| After-tax WACC | 5.1% | 10.8% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8186.HK | M-Resources Group Ltd | 0 | 0.43 | 0.43 |
| 723.HK | Reliance Global Holdings Ltd | 0.12 | 1.21 | 1.1 |
| 8003.HK | Great World Company Holdings Ltd | 2.8 | 0.14 | 0.04 |
| 8166.HK | China Eco-Farming Ltd | 8.85 | 1.38 | 0.16 |
| 8191.HK | Hong Wei Asia Holdings Co Ltd | 38.15 | 0.44 | 0.01 |
| 8277.HK | Steed Oriental (Holdings) Company Ltd | 6.49 | -0.76 | -0.11 |
| 923.HK | Integrated Waste Solutions Group Holdings Ltd | 0.7 | 1.26 | 0.78 |
| 94.HK | Greenheart Group Ltd | 6.06 | 0.36 | 0.06 |
| DOMINAN.KL | Dominant Enterprise Bhd | 1.56 | 0.5 | 0.21 |
| KAYU.JK | Darmi Bersaudara Tbk PT | 0.66 | -0.9 | -0.57 |
| Low | High | |
| Unlevered beta | 0.05 | 0.18 |
| Relevered beta | 0.04 | 0.18 |
| Adjusted relevered beta | 0.36 | 0.45 |
8186.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 8186.HK:
cost_of_equity (6.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.