872.HK WACC - Weighted Average Cost of Capital

The WACC of TUS International Ltd (872.HK) is 7.1%.

The Cost of Equity of TUS International Ltd (872.HK) is 9.95%.

The Cost of Debt of TUS International Ltd (872.HK) is 7.00%.

	Range	Selected
Cost of equity	8.10% - 11.80%	9.95%
Tax rate	4.40% - 5.30%	4.85%
Cost of debt	7.00% - 7.00%	7.00%
WACC	6.9% - 7.3%	7.1%

WACC

872.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.88	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	11.80%

Tax rate	4.40%	5.30%
Debt/Equity ratio	6.72	6.72
Cost of debt	7.00%	7.00%

After-tax WACC	6.9%	7.3%


Selected WACC	7.1%

872.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 872.HK:

cost_of_equity (9.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.88) + 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.