8413.HK WACC - Weighted Average Cost of Capital
The WACC of Asia Grocery Distribution Ltd (8413.HK) is 7.1%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.3% | 5.6% |
| Tax rate | 6.0% - 10.1% | 8.05% |
| Cost of debt | 5.1% - 31.6% | 18.35% |
| WACC | 4.9% - 9.3% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.34 | 0.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 6.3% |
| Tax rate | 6.0% | 10.1% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 5.1% | 31.6% |
| After-tax WACC | 4.9% | 9.3% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8413.HK | Asia Grocery Distribution Ltd | 0.15 | 0.26 | 0.23 |
| 156.HK | Lippo China Resources Ltd | 1.75 | 0.76 | 0.29 |
| 1705.HK | B & S International Holdings Ltd | 0.37 | 0.03 | 0.02 |
| 226.HK | Lippo Ltd | 6.21 | 0.01 | 0 |
| 30.HK | Ban Loong Holdings Ltd | 0.01 | 0.02 | 0.02 |
| 60.HK | Hong Kong Food Investment Holdings Ltd | 0.4 | 0.06 | 0.05 |
| 8057.HK | Madison Holdings Group Ltd | 1.08 | -0.65 | -0.33 |
| 8079.HK | Easy Repay Finance & Investment Ltd | 0.33 | 1.04 | 0.79 |
| 8163.HK | Merdeka Financial Group Ltd | 0.05 | -0.59 | -0.56 |
| 8476.HK | Ocean One Holding Ltd | 0 | -0.34 | -0.34 |
| Low | High | |
| Unlevered beta | 0.01 | 0.03 |
| Relevered beta | 0.01 | 0.03 |
| Adjusted relevered beta | 0.34 | 0.35 |
8413.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 8413.HK:
cost_of_equity (5.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.