8210.HK WACC - Weighted Average Cost of Capital

The WACC of DLC Asia Ltd (8210.HK) is 7.3%.

The Cost of Equity of DLC Asia Ltd (8210.HK) is 7.45%.

The Cost of Debt of DLC Asia Ltd (8210.HK) is 4.45%.

	Range	Selected
Cost of equity	6.50% - 8.40%	7.45%
Tax rate	3.80% - 7.10%	5.45%
Cost of debt	4.00% - 4.90%	4.45%
WACC	6.3% - 8.3%	7.3%

WACC

8210.HK WACC calculation

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	6.50%	8.40%

Tax rate	3.80%	7.10%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	4.90%

After-tax WACC	6.3%	8.3%


Selected WACC	7.3%

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.