8475.HK
K Group Holdings Ltd
Price:  
0.07 
HKD
Volume:  
35,000
Singapore | Hotels, Restaurants & Leisure

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 9.7%.
The Cost of Debt of K Group Holdings Ltd (8475.HK) is 11.95%.

RangeSelected
Cost of equity7.6% - 11.8%9.7%
Tax rate0.7% - 1.6%1.15%
Cost of debt7.0% - 16.9%11.95%
WACC7.2% - 15.1%11.1%
WACC

8475.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.791.14
Additional risk adjustments0.0%0.5%
Cost of equity7.6%11.8%
Tax rate0.7%1.6%
Debt/Equity ratio
2.242.24
Cost of debt7.0%16.9%
After-tax WACC7.2%15.1%
Selected WACC11.1%

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.