8448.HK WACC - Weighted Average Cost of Capital

The WACC of Universe Printshop Holdings Ltd (8448.HK) is 6.8%.

The Cost of Equity of Universe Printshop Holdings Ltd (8448.HK) is 6.65%.

The Cost of Debt of Universe Printshop Holdings Ltd (8448.HK) is 7.20%.

	Range	Selected
Cost of equity	5.40% - 7.90%	6.65%
Tax rate	1.80% - 4.50%	3.15%
Cost of debt	7.00% - 7.40%	7.20%
WACC	6.3% - 7.4%	6.8%

WACC

8448.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.18	0.36

Additional risk adjustments	1.5%	2.0%
Cost of equity	5.40%	7.90%

Tax rate	1.80%	4.50%
Debt/Equity ratio	1.47	1.47
Cost of debt	7.00%	7.40%

After-tax WACC	6.3%	7.4%


Selected WACC	6.8%

8448.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 8448.HK:

cost_of_equity (6.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.18) + risk_adjustments (1.75%)

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