8436.HK
Takbo Group Holdings Ltd
Price:  
0.24 
HKD
Volume:  
100,000
Hong Kong | Personal Products

8436.HK WACC - Weighted Average Cost of Capital

The WACC of Takbo Group Holdings Ltd (8436.HK) is 5.8%.

The Cost of Equity of Takbo Group Holdings Ltd (8436.HK) is 5.95%.
The Cost of Debt of Takbo Group Holdings Ltd (8436.HK) is 5.5%.

RangeSelected
Cost of equity5.1% - 6.8%5.95%
Tax rate9.5% - 14.3%11.9%
Cost of debt4.0% - 7.0%5.5%
WACC5.0% - 6.7%5.8%
WACC

8436.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.370.42
Additional risk adjustments0.0%0.5%
Cost of equity5.1%6.8%
Tax rate9.5%14.3%
Debt/Equity ratio
0.10.1
Cost of debt4.0%7.0%
After-tax WACC5.0%6.7%
Selected WACC5.8%

8436.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 8436.HK:

cost_of_equity (5.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.37) + 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.