8472.HK WACC - Weighted Average Cost of Capital
The WACC of Lapco Holdings Ltd (8472.HK) is 7.6%.
| Range | Selected | |
| Cost of equity | 8.3% - 11.7% | 10% |
| Tax rate | 14.1% - 19.5% | 16.8% |
| Cost of debt | 5.3% - 6.5% | 5.9% |
| WACC | 6.5% - 8.6% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.91 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 11.7% |
| Tax rate | 14.1% | 19.5% |
| Debt/Equity ratio | 0.9 | 0.9 |
| Cost of debt | 5.3% | 6.5% |
| After-tax WACC | 6.5% | 8.6% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8472.HK | Lapco Holdings Ltd | 0.9 | 0.62 | 0.36 |
| 1397.HK | Baguio Green Group Ltd | 0.42 | 0.24 | 0.18 |
| 309.HK | Xinhua News Media Holdings Ltd | 0.19 | 0.25 | 0.21 |
| 436.HK | New Universe Environmental Group Ltd | 0.26 | 0.72 | 0.59 |
| 6812.HK | Winson Holdings Hong Kong Ltd | 0.03 | 0.61 | 0.6 |
| 8309.HK | Man Shing Global Holdings Ltd | 1.03 | 0.28 | 0.15 |
| 8441.HK | IWS Group Holdings Ltd | 0.01 | 1.03 | 1.03 |
| AWHCL.NS | Antony Waste Handling Cell Ltd | 0.27 | 1.61 | 1.31 |
| JAG.KL | JAG Bhd | 0.4 | 1.06 | 0.79 |
| V3M.SI | Metech International Ltd | 0 | 1.32 | 1.32 |
| Low | High | |
| Unlevered beta | 0.49 | 0.68 |
| Relevered beta | 0.87 | 1.18 |
| Adjusted relevered beta | 0.91 | 1.12 |
8472.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 8472.HK:
cost_of_equity (10.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.91) + 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.