8657.HK WACC - Weighted Average Cost of Capital

The WACC of True Partner Capital Holding Ltd (8657.HK) is 6.0%.

The Cost of Equity of True Partner Capital Holding Ltd (8657.HK) is 6.00%.

The Cost of Debt of True Partner Capital Holding Ltd (8657.HK) is 7.60%.

	Range	Selected
Cost of equity	5.20% - 6.80%	6.00%
Tax rate	2.70% - 3.50%	3.10%
Cost of debt	7.00% - 8.20%	7.60%
WACC	5.2% - 6.8%	6.0%

WACC

8657.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.39	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	6.80%

Tax rate	2.70%	3.50%
Debt/Equity ratio	0	0
Cost of debt	7.00%	8.20%

After-tax WACC	5.2%	6.8%


Selected WACC	6.0%

8657.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 8657.HK:

cost_of_equity (6.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.