8475.HK
K Group Holdings Ltd
Price:  
0.07 
HKD
Volume:  
35,000.00
Singapore | Hotels, Restaurants & Leisure
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

8475.HK WACC - Weighted Average Cost of Capital

The WACC of K Group Holdings Ltd (8475.HK) is 11.1%.

The Cost of Equity of K Group Holdings Ltd (8475.HK) is 9.70%.
The Cost of Debt of K Group Holdings Ltd (8475.HK) is 11.95%.

Range Selected
Cost of equity 7.60% - 11.80% 9.70%
Tax rate 0.70% - 1.60% 1.15%
Cost of debt 7.00% - 16.90% 11.95%
WACC 7.2% - 15.1% 11.1%
WACC

8475.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.79 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 11.80%
Tax rate 0.70% 1.60%
Debt/Equity ratio 2.24 2.24
Cost of debt 7.00% 16.90%
After-tax WACC 7.2% 15.1%
Selected WACC 11.1%

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.