8413.HK
Asia Grocery Distribution Ltd
Price:  
0.12 
HKD
Volume:  
20,000.00
Hong Kong | Food & Staples Retailing
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

8413.HK WACC - Weighted Average Cost of Capital

The WACC of Asia Grocery Distribution Ltd (8413.HK) is 7.1%.

The Cost of Equity of Asia Grocery Distribution Ltd (8413.HK) is 5.60%.
The Cost of Debt of Asia Grocery Distribution Ltd (8413.HK) is 18.35%.

Range Selected
Cost of equity 4.90% - 6.30% 5.60%
Tax rate 6.00% - 10.10% 8.05%
Cost of debt 5.10% - 31.60% 18.35%
WACC 4.9% - 9.3% 7.1%
WACC

8413.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.34 0.35
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.90% 6.30%
Tax rate 6.00% 10.10%
Debt/Equity ratio 0.15 0.15
Cost of debt 5.10% 31.60%
After-tax WACC 4.9% 9.3%
Selected WACC 7.1%

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.