8487.HK WACC - Weighted Average Cost of Capital

The WACC of ISP Global Ltd (8487.HK) is 8.8%.

The Cost of Equity of ISP Global Ltd (8487.HK) is 8.80%.

The Cost of Debt of ISP Global Ltd (8487.HK) is 10.35%.

	Range	Selected
Cost of equity	7.50% - 10.10%	8.80%
Tax rate	6.20% - 19.90%	13.05%
Cost of debt	7.00% - 13.70%	10.35%
WACC	6.7% - 10.8%	8.8%

WACC

8487.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.77	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.10%

Tax rate	6.20%	19.90%
Debt/Equity ratio	4.66	4.66
Cost of debt	7.00%	13.70%

After-tax WACC	6.7%	10.8%


Selected WACC	8.8%

8487.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 8487.HK:

cost_of_equity (8.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.77) + 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.