8512.HK WACC - Weighted Average Cost of Capital

The WACC of Hyfusin Group Holdings Ltd (8512.HK) is 10.0%.

The Cost of Equity of Hyfusin Group Holdings Ltd (8512.HK) is 9.70%.

The Cost of Debt of Hyfusin Group Holdings Ltd (8512.HK) is 17.20%.

	Range	Selected
Cost of equity	7.90% - 11.50%	9.70%
Tax rate	17.90% - 18.20%	18.05%
Cost of debt	4.00% - 30.40%	17.20%
WACC	7.7% - 12.3%	10.0%

WACC

8512.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.85	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	11.50%

Tax rate	17.90%	18.20%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.00%	30.40%

After-tax WACC	7.7%	12.3%


Selected WACC	10.0%

8512.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 8512.HK:

cost_of_equity (9.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.85) + 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.