8210.HK WACC - Weighted Average Cost of Capital
The WACC of DLC Asia Ltd (8210.HK) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.4% - 8.3% | 7.35% |
| Tax rate | 3.8% - 7.1% | 5.45% |
| Cost of debt | 4.0% - 4.9% | 4.45% |
| WACC | 6.3% - 8.1% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.59 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 8.3% |
| 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% | 8.1% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8210.HK | DLC Asia Ltd | 0.05 | 0.65 | 0.62 |
| 188.HK | Sunwah Kingsway Capital Holdings Ltd | 0.32 | 0.5 | 0.38 |
| 2263.HK | Fu Shek Financial Holdings Ltd | 0 | 0.57 | 0.57 |
| 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 |
| 8168.HK | Amasse Capital Holdings Ltd | 0.03 | 0.07 | 0.07 |
| 821.HK | Value Convergence Holdings Ltd | 0.55 | 1.38 | 0.9 |
| 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 |
| Low | High | |
| Unlevered beta | 0.37 | 0.44 |
| Relevered beta | 0.39 | 0.46 |
| Adjusted relevered beta | 0.59 | 0.64 |
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 (7.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.59) + 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.