8341.HK WACC - Weighted Average Cost of Capital

The WACC of Aeso Holding Ltd (8341.HK) is 5.7%.

The Cost of Equity of Aeso Holding Ltd (8341.HK) is 11.30%.

The Cost of Debt of Aeso Holding Ltd (8341.HK) is 4.70%.

	Range	Selected
Cost of equity	7.50% - 15.10%	11.30%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	4.10% - 5.30%	4.70%
WACC	4.3% - 7.1%	5.7%

WACC

8341.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.77	1.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	15.10%

Tax rate	22.10%	22.30%
Debt/Equity ratio	2.75	2.75
Cost of debt	4.10%	5.30%

After-tax WACC	4.3%	7.1%


Selected WACC	5.7%

8341.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 8341.HK:

cost_of_equity (11.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.77) + 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.