8412.HK WACC - Weighted Average Cost of Capital

The WACC of BCI Group Holdings Ltd (8412.HK) is 5.8%.

The Cost of Equity of BCI Group Holdings Ltd (8412.HK) is 6.05%.

The Cost of Debt of BCI Group Holdings Ltd (8412.HK) is 5.50%.

	Range	Selected
Cost of equity	4.60% - 7.50%	6.05%
Tax rate	3.60% - 6.40%	5.00%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.4% - 7.2%	5.8%

WACC

8412.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.3	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.60%	7.50%

Tax rate	3.60%	6.40%
Debt/Equity ratio	0.37	0.37
Cost of debt	4.00%	7.00%

After-tax WACC	4.4%	7.2%


Selected WACC	5.8%

8412.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 8412.HK:

cost_of_equity (6.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.3) + 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.