8432.HK WACC - Weighted Average Cost of Capital

The WACC of Bar Pacific Group Holdings Ltd (8432.HK) is 5.2%.

The Cost of Equity of Bar Pacific Group Holdings Ltd (8432.HK) is 6.60%.

The Cost of Debt of Bar Pacific Group Holdings Ltd (8432.HK) is 5.25%.

	Range	Selected
Cost of equity	5.30% - 7.90%	6.60%
Tax rate	3.30% - 9.30%	6.30%
Cost of debt	4.00% - 6.50%	5.25%
WACC	4.2% - 6.3%	5.2%

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	0.32	0.5

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.30%	7.90%

Tax rate	3.30%	9.30%
Debt/Equity ratio	3.82	3.82
Cost of debt	4.00%	6.50%

After-tax WACC	4.2%	6.3%


Selected WACC	5.2%

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 (6.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.32) + risk_adjustments (0.75%)

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