8482.HK WACC - Weighted Average Cost of Capital
The WACC of Wan Leader International Ltd (8482.HK) is 7.9%.
| Range | Selected | |
| Cost of equity | 5.9% - 11.5% | 8.7% |
| Tax rate | 2.1% - 11.9% | 7% |
| Cost of debt | 5.4% - 7.0% | 6.2% |
| WACC | 5.7% - 10.2% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.5 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 11.5% |
| Tax rate | 2.1% | 11.9% |
| Debt/Equity ratio | 0.33 | 0.33 |
| Cost of debt | 5.4% | 7.0% |
| After-tax WACC | 5.7% | 10.2% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8482.HK | Wan Leader International Ltd | 0.33 | -0.26 | -0.2 |
| 1737.HK | A & S Group (Holdings) Limited | 0.72 | 0.4 | 0.24 |
| 2130.HK | CN Logistics International Holdings Ltd | 0.45 | 0.17 | 0.12 |
| 523116.BO | Sanco Trans Ltd | 0.08 | 0.95 | 0.89 |
| 536264.BO | Tiger Logistics (India) Ltd | 0.06 | 1.36 | 1.28 |
| 6083.HK | World-Link Logistics (Asia) Holding Ltd | 0.39 | 0.08 | 0.06 |
| 6123.HK | YTO Express (International) Holdings Ltd | 0.08 | 0.92 | 0.85 |
| 8035.HK | Janco Holdings Ltd | 1.13 | -0.17 | -0.08 |
| ACCURACY.NS | Accuracy Shipping Ltd | 0.97 | 1.76 | 0.91 |
| PATINTLOG.NS | Patel Integrated Logistics Ltd | 0.1 | 1.56 | 1.42 |
| Low | High | |
| Unlevered beta | 0.19 | 0.87 |
| Relevered beta | 0.25 | 1.15 |
| Adjusted relevered beta | 0.5 | 1.1 |
8482.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 8482.HK:
cost_of_equity (8.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.5) + 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.