900.HK WACC - Weighted Average Cost of Capital
The WACC of Aeon Credit Service Asia Co Ltd (900.HK) is 6.6%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.3% | 9.9% |
| Tax rate | 16.5% - 16.9% | 16.7% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.8% - 7.3% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.95 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.3% |
| Tax rate | 16.5% | 16.9% |
| Debt/Equity ratio | 1.11 | 1.11 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.8% | 7.3% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 900.HK | Aeon Credit Service Asia Co Ltd | 1.11 | 0.31 | 0.16 |
| 1319.HK | Oi Wah Pawnshop Credit Holdings Ltd | 0.25 | 0.13 | 0.11 |
| 5103.T | Showa Holdings Co Ltd | 0.21 | 0.75 | 0.64 |
| 622.HK | Oshidori International Holdings Ltd | 0.04 | 0.42 | 0.41 |
| 7199.T | Premium Group Co Ltd | 0.58 | 0.82 | 0.55 |
| 730.HK | Shougang Concord Grand (Group) Ltd | 0.05 | 0.54 | 0.52 |
| 8019.HK | Hao Wen Holdings Ltd | 0.75 | 0.97 | 0.6 |
| 8325.HK | China Smartpay Group Holdings Ltd | 2.47 | -0.17 | -0.06 |
| MFIN.JK | Mandala Multifinance Tbk PT | 0.28 | 0.78 | 0.63 |
| MNY.AX | Money3 Corp Ltd | 1.42 | 2.08 | 0.96 |
| Low | High | |
| Unlevered beta | 0.48 | 0.57 |
| Relevered beta | 0.93 | 1.09 |
| Adjusted relevered beta | 0.95 | 1.06 |
900.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 900.HK:
cost_of_equity (9.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.95) + 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.