8545.HK WACC - Weighted Average Cost of Capital
The WACC of Amuse Group Holding Ltd (8545.HK) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.6% - 10.0% | 8.3% |
| Tax rate | 32.5% - 41.5% | 37% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.1% - 9.0% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.62 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 10.0% |
| Tax rate | 32.5% | 41.5% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.1% | 9.0% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8545.HK | Amuse Group Holding Ltd | 0.14 | 0.37 | 0.34 |
| 031860.KQ | NSN Co Ltd | 0.26 | 1.75 | 1.5 |
| 348.HK | China Healthwise Holdings Ltd | 1.58 | 0.87 | 0.43 |
| 361.HK | Sino Golf Holdings Ltd | 0.38 | 0.19 | 0.15 |
| 381.HK | Kiu Hung International Holdings Ltd | 0.47 | -1.96 | -1.49 |
| 3830.HK | Kiddieland International Ltd | 0.06 | 0.8 | 0.77 |
| 4274.T | Hosoya Pyro-Engineering Co Ltd | 0.16 | 1.04 | 0.94 |
| 8033.TW | Thunder Tiger Corp | 0.1 | 0.76 | 0.72 |
| 8406.HK | Alpha Era International Holdings Ltd | 0.04 | 0.93 | 0.91 |
| 869.HK | Playmates Toys Ltd | 0.02 | 0.21 | 0.21 |
| Low | High | |
| Unlevered beta | 0.39 | 0.74 |
| Relevered beta | 0.43 | 0.81 |
| Adjusted relevered beta | 0.62 | 0.87 |
8545.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 8545.HK:
cost_of_equity (8.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.62) + 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.