8245.HK WACC - Weighted Average Cost of Capital

The WACC of On Real International Holdings Ltd (8245.HK) is 10.4%.

The Cost of Equity of On Real International Holdings Ltd (8245.HK) is 11.35%.

The Cost of Debt of On Real International Holdings Ltd (8245.HK) is 4.65%.

	Range	Selected
Cost of equity	9.00% - 13.70%	11.35%
Tax rate	0.40% - 2.80%	1.60%
Cost of debt	4.00% - 5.30%	4.65%
WACC	8.3% - 12.6%	10.4%

WACC

8245.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.02	1.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	13.70%

Tax rate	0.40%	2.80%
Debt/Equity ratio	0.15	0.15
Cost of debt	4.00%	5.30%

After-tax WACC	8.3%	12.6%


Selected WACC	10.4%

8245.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 8245.HK:

cost_of_equity (11.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.02) + 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.