8432.HK WACC - Weighted Average Cost of Capital

The WACC of Bar Pacific Group Holdings Ltd (8432.HK) is 7.7%.

The Cost of Equity of Bar Pacific Group Holdings Ltd (8432.HK) is 6.25%.

The Cost of Debt of Bar Pacific Group Holdings Ltd (8432.HK) is 9.30%.

	Range	Selected
Cost of equity	3.90% - 8.60%	6.25%
Tax rate	9.80% - 15.40%	12.60%
Cost of debt	4.00% - 14.60%	9.30%
WACC	3.7% - 11.8%	7.7%

WACC

8432.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	0.53

Additional risk adjustments	1.0%	1.5%
Cost of equity	3.90%	8.60%

Tax rate	9.80%	15.40%
Debt/Equity ratio	5.06	5.06
Cost of debt	4.00%	14.60%

After-tax WACC	3.7%	11.8%


Selected WACC	7.7%

8432.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 8432.HK:

cost_of_equity (6.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.