8333.HK WACC - Weighted Average Cost of Capital

The WACC of Astrum Financial Holdings Ltd (8333.HK) is 10.0%.

The Cost of Equity of Astrum Financial Holdings Ltd (8333.HK) is 6.00%.

The Cost of Debt of Astrum Financial Holdings Ltd (8333.HK) is 26.50%.

	Range	Selected
Cost of equity	5.20% - 6.80%	6.00%
Tax rate	1.10% - 3.00%	2.05%
Cost of debt	7.00% - 46.00%	26.50%
WACC	5.5% - 14.5%	10.0%

WACC

8333.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.39	0.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	6.80%

Tax rate	1.10%	3.00%
Debt/Equity ratio	0.26	0.26
Cost of debt	7.00%	46.00%

After-tax WACC	5.5%	14.5%


Selected WACC	10.0%

8333.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 8333.HK:

cost_of_equity (6.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.