8448.HK WACC - Weighted Average Cost of Capital
The WACC of Universe Printshop Holdings Ltd (8448.HK) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.8% | 6.45% |
| Tax rate | 1.8% - 4.5% | 3.15% |
| Cost of debt | 7.0% - 7.4% | 7.2% |
| WACC | 6.2% - 7.3% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.12 | 0.34 |
| Additional risk adjustments | 1.5% | 2.0% |
| Cost of equity | 5.1% | 7.8% |
| Tax rate | 1.8% | 4.5% |
| Debt/Equity ratio | 1.57 | 1.57 |
| Cost of debt | 7.0% | 7.4% |
| After-tax WACC | 6.2% | 7.3% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8448.HK | Universe Printshop Holdings Ltd | 1.57 | -0.43 | -0.17 |
| 1481.HK | Smart Globe Holdings Ltd | 0.02 | -0.34 | -0.34 |
| 1540.HK | Left Field Printing Group Ltd | 0.05 | -0.1 | -0.09 |
| 1631.HK | REF Holdings Ltd | 0.3 | 0.87 | 0.67 |
| 1841.HK | A.Plus Group Holdings Ltd | 0.07 | 0.29 | 0.27 |
| 534190.BO | Olympic Cards Ltd | 5.11 | 0.15 | 0.02 |
| 55.HK | Neway Group Holdings Ltd | 4.72 | 0.13 | 0.02 |
| 556.HK | Pan Asia Environmental Protection Group Ltd | 0.02 | -0.49 | -0.48 |
| 8416.HK | HM International Holdings Ltd | 0.5 | 0 | 0 |
| 8450.HK | EDICO Holdings Ltd | 0.02 | -0.81 | -0.79 |
| Low | High | |
| Unlevered beta | -0.12 | 0.01 |
| Relevered beta | -0.31 | 0.01 |
| Adjusted relevered beta | 0.12 | 0.34 |
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 (6.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.12) + 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.