8475.HK WACC - Weighted Average Cost of Capital
The WACC of K Group Holdings Ltd (8475.HK) is 11.1%.
| Range | Selected | |
| Cost of equity | 7.6% - 11.8% | 9.7% |
| Tax rate | 0.7% - 1.6% | 1.15% |
| Cost of debt | 7.0% - 16.9% | 11.95% |
| WACC | 7.2% - 15.1% | 11.1% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.79 | 1.14 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 11.8% |
| Tax rate | 0.7% | 1.6% |
| Debt/Equity ratio | 2.24 | 2.24 |
| Cost of debt | 7.0% | 16.9% |
| After-tax WACC | 7.2% | 15.1% |
| Selected WACC | 11.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8475.HK | K Group Holdings Ltd | 2.24 | 1.09 | 0.34 |
| 1A0.SI | Katrina Group Ltd | 2.85 | -0.42 | -0.11 |
| 1G1.SI | RE&S Holdings Ltd | 0.58 | 0.22 | 0.14 |
| 2762.T | Sanko Marketing Foods Co Ltd | 0.15 | 0.55 | 0.48 |
| 42R.SI | JUMBO Group Ltd | 0.23 | 0.32 | 0.26 |
| 540.SI | Tung Lok Restaurants (2000) Ltd | 1.2 | 0.25 | 0.11 |
| 5OI.SI | Japan Foods Holding Ltd | 1.35 | -0.36 | -0.16 |
| 7678.T | Asakuma Co Ltd | 0 | 0.58 | 0.58 |
| 9266.T | Ikka Dining Project Ltd | 0.89 | 1.47 | 0.78 |
| PTSP.JK | Pioneerindo Gourmet International Tbk PT | 0.33 | 0.56 | 0.43 |
| Low | High | |
| Unlevered beta | 0.21 | 0.37 |
| Relevered beta | 0.69 | 1.21 |
| Adjusted relevered beta | 0.79 | 1.14 |
8475.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 8475.HK:
cost_of_equity (9.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.79) + 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.