8347.HK WACC - Weighted Average Cost of Capital

The WACC of F8 Enterprises (Holdings) Group Ltd (8347.HK) is 7.7%.

The Cost of Equity of F8 Enterprises (Holdings) Group Ltd (8347.HK) is 5.95%.

The Cost of Debt of F8 Enterprises (Holdings) Group Ltd (8347.HK) is 10.10%.

	Range	Selected
Cost of equity	5.10% - 6.80%	5.95%
Tax rate	11.20% - 19.60%	15.40%
Cost of debt	8.80% - 11.40%	10.10%
WACC	7.0% - 8.5%	7.7%

WACC

8347.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.37	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.10%	6.80%

Tax rate	11.20%	19.60%
Debt/Equity ratio	2.46	2.46
Cost of debt	8.80%	11.40%

After-tax WACC	7.0%	8.5%


Selected WACC	7.7%

8347.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 8347.HK:

cost_of_equity (5.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.37) + 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.