8439.HK
Somerley Capital Holdings Ltd
Price:  
0.38 
HKD
Volume:  
6,000
Hong Kong | Capital Markets

8439.HK WACC - Weighted Average Cost of Capital

The WACC of Somerley Capital Holdings Ltd (8439.HK) is 6.1%.

The Cost of Equity of Somerley Capital Holdings Ltd (8439.HK) is 6.1%.
The Cost of Debt of Somerley Capital Holdings Ltd (8439.HK) is 5.6%.

RangeSelected
Cost of equity5.3% - 6.9%6.1%
Tax rate2.1% - 3.3%2.7%
Cost of debt4.2% - 7.0%5.6%
WACC5.2% - 6.9%6.1%
WACC

8439.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.410.44
Additional risk adjustments0.0%0.5%
Cost of equity5.3%6.9%
Tax rate2.1%3.3%
Debt/Equity ratio
0.060.06
Cost of debt4.2%7.0%
After-tax WACC5.2%6.9%
Selected WACC6.1%

8439.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 8439.HK:

cost_of_equity (6.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.41) + 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.