8325.HK WACC - Weighted Average Cost of Capital

The WACC of China Smartpay Group Holdings Ltd (8325.HK) is 9.8%.

The Cost of Equity of China Smartpay Group Holdings Ltd (8325.HK) is 6.55%.

The Cost of Debt of China Smartpay Group Holdings Ltd (8325.HK) is 11.30%.

	Range	Selected
Cost of equity	5.50% - 7.60%	6.55%
Tax rate	0.80% - 1.70%	1.25%
Cost of debt	8.00% - 14.60%	11.30%
WACC	7.2% - 12.4%	9.8%

WACC

8325.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.44	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	7.60%

Tax rate	0.80%	1.70%
Debt/Equity ratio	2.47	2.47
Cost of debt	8.00%	14.60%

After-tax WACC	7.2%	12.4%


Selected WACC	9.8%

8325.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 8325.HK:

cost_of_equity (6.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.44) + 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.