8460.HK WACC - Weighted Average Cost of Capital

The WACC of Basetrophy Group Holdings Ltd (8460.HK) is 5.0%.

The Cost of Equity of Basetrophy Group Holdings Ltd (8460.HK) is 5.25%.

The Cost of Debt of Basetrophy Group Holdings Ltd (8460.HK) is 6.15%.

	Range	Selected
Cost of equity	4.10% - 6.40%	5.25%
Tax rate	14.40% - 30.60%	22.50%
Cost of debt	5.30% - 7.00%	6.15%
WACC	4.2% - 5.8%	5.0%

WACC

8460.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.21	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.10%	6.40%

Tax rate	14.40%	30.60%
Debt/Equity ratio	0.57	0.57
Cost of debt	5.30%	7.00%

After-tax WACC	4.2%	5.8%


Selected WACC	5.0%

8460.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 8460.HK:

cost_of_equity (5.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.21) + 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.