8490.HK WACC - Weighted Average Cost of Capital

The WACC of Niche-Tech Group Ltd (8490.HK) is 4.5%.

The Cost of Equity of Niche-Tech Group Ltd (8490.HK) is 5.80%.

The Cost of Debt of Niche-Tech Group Ltd (8490.HK) is 5.50%.

	Range	Selected
Cost of equity	5.00% - 6.60%	5.80%
Tax rate	28.20% - 36.60%	32.40%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.7% - 5.3%	4.5%

WACC

8490.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.35	0.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.00%	6.60%

Tax rate	28.20%	36.60%
Debt/Equity ratio	1.49	1.49
Cost of debt	4.00%	7.00%

After-tax WACC	3.7%	5.3%


Selected WACC	4.5%

8490.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 8490.HK:

cost_of_equity (5.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.35) + 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.