8210.HK WACC - Weighted Average Cost of Capital
The WACC of DLC Asia Ltd (8210.HK) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.4% | 7.45% |
| Tax rate | 3.8% - 7.1% | 5.45% |
| Cost of debt | 4.0% - 4.9% | 4.45% |
| WACC | 6.3% - 8.3% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.6 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.4% |
| Tax rate | 3.8% | 7.1% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.0% | 4.9% |
| After-tax WACC | 6.3% | 8.3% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8210.HK | DLC Asia Ltd | 0.05 | 0.62 | 0.59 |
| 188.HK | Sunwah Kingsway Capital Holdings Ltd | 0.38 | 0.5 | 0.36 |
| 2263.HK | Fu Shek Financial Holdings Ltd | 0.01 | 0.52 | 0.52 |
| 8001.HK | Orient Securities International Holdings Ltd | 0.01 | -1.73 | -1.71 |
| 8098.HK | CL Group (Holdings) Ltd | 0.29 | 0 | 0 |
| 8168.HK | Amasse Capital Holdings Ltd | 0.03 | 0.02 | 0.02 |
| 821.HK | Value Convergence Holdings Ltd | 0.51 | 1.37 | 0.92 |
| 8221.HK | PF Group Holdings Ltd | 1.02 | 0.74 | 0.38 |
| 8333.HK | Astrum Financial Holdings Ltd | 0.2 | 0.48 | 0.4 |
| 8350.HK | Excalibur Global Financial Holdings Ltd | 0.31 | 0.6 | 0.47 |
| Low | High | |
| Unlevered beta | 0.37 | 0.43 |
| Relevered beta | 0.4 | 0.49 |
| Adjusted relevered beta | 0.6 | 0.66 |
8210.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 8210.HK:
cost_of_equity (7.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.6) + 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.