8365.HK WACC - Weighted Average Cost of Capital
The WACC of VBG International Holdings Ltd (8365.HK) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.5% | 6.4% |
| Tax rate | 5.7% - 10.5% | 8.1% |
| Cost of debt | 6.4% - 7.0% | 6.7% |
| WACC | 5.5% - 7.1% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.41 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.5% |
| Tax rate | 5.7% | 10.5% |
| Debt/Equity ratio | 0.41 | 0.41 |
| Cost of debt | 6.4% | 7.0% |
| After-tax WACC | 5.5% | 7.1% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8365.HK | VBG International Holdings Ltd | 0.41 | 0.53 | 0.38 |
| 2680.HK | Innovax Holdings Ltd | 0 | -0.11 | -0.11 |
| 430.HK | Oriental Explorer Holdings Ltd | 0.96 | 0.13 | 0.07 |
| 619.HK | South China Financial Holdings Ltd | 6.79 | -0.29 | -0.04 |
| 8001.HK | Orient Securities International Holdings Ltd | 0.01 | -1.73 | -1.71 |
| 8193.HK | Asia Pac Financial Investment Company Ltd | 0.57 | 0.22 | 0.15 |
| 8210.HK | DLC Asia Ltd | 0.04 | 0.65 | 0.63 |
| 8226.HK | KOALA Financial Group Ltd | 0.07 | 1.49 | 1.4 |
| 8295.HK | ZZ Capital International Ltd | 1.28 | 0.64 | 0.3 |
| 8540.HK | Victory Securities (Holdings) Company Ltd | 0.26 | 0.12 | 0.1 |
| Low | High | |
| Unlevered beta | 0.08 | 0.21 |
| Relevered beta | 0.12 | 0.28 |
| Adjusted relevered beta | 0.41 | 0.52 |
8365.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 8365.HK:
cost_of_equity (6.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.41) + 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.