8329.HK WACC - Weighted Average Cost of Capital

The WACC of Shenzhen Neptunus Interlong Bio-technique Co Ltd (8329.HK) is 8.5%.

The Cost of Equity of Shenzhen Neptunus Interlong Bio-technique Co Ltd (8329.HK) is 9.35%.

The Cost of Debt of Shenzhen Neptunus Interlong Bio-technique Co Ltd (8329.HK) is 9.25%.

	Range	Selected
Cost of equity	7.60% - 11.10%	9.35%
Tax rate	22.70% - 34.80%	28.75%
Cost of debt	4.00% - 14.50%	9.25%
WACC	6.3% - 10.6%	8.5%

WACC

8329.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.8	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	11.10%

Tax rate	22.70%	34.80%
Debt/Equity ratio	0.41	0.41
Cost of debt	4.00%	14.50%

After-tax WACC	6.3%	10.6%


Selected WACC	8.5%

8329.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 8329.HK:

cost_of_equity (9.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.8) + 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.