8460.HK WACC - Weighted Average Cost of Capital

The WACC of Basetrophy Group Holdings Ltd (8460.HK) is 6.7%.

The Cost of Equity of Basetrophy Group Holdings Ltd (8460.HK) is 6.65%.

The Cost of Debt of Basetrophy Group Holdings Ltd (8460.HK) is 7.35%.

	Range	Selected
Cost of equity	5.20% - 8.10%	6.65%
Tax rate	6.30% - 12.30%	9.30%
Cost of debt	7.00% - 7.70%	7.35%
WACC	5.3% - 8.1%	6.7%

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	0.23	0.47

Additional risk adjustments	1.0%	1.5%
Cost of equity	5.20%	8.10%

Tax rate	6.30%	12.30%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.00%	7.70%

After-tax WACC	5.3%	8.1%


Selected WACC	6.7%

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 (6.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.23) + risk_adjustments (1.25%)

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