8229.HK WACC - Weighted Average Cost of Capital

The WACC of Future Data Group Ltd (8229.HK) is 7.5%.

The Cost of Equity of Future Data Group Ltd (8229.HK) is 7.60%.

The Cost of Debt of Future Data Group Ltd (8229.HK) is 7.85%.

	Range	Selected
Cost of equity	6.10% - 9.10%	7.60%
Tax rate	22.20% - 33.30%	27.75%
Cost of debt	7.00% - 8.70%	7.85%
WACC	6.1% - 8.9%	7.5%

WACC

8229.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.54	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	9.10%

Tax rate	22.20%	33.30%
Debt/Equity ratio	0.05	0.05
Cost of debt	7.00%	8.70%

After-tax WACC	6.1%	8.9%


Selected WACC	7.5%

8229.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 8229.HK:

cost_of_equity (7.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.54) + 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.