900.HK
Aeon Credit Service Asia Co Ltd
Price:  
6.95 
HKD
Volume:  
192,224.00
Hong Kong | Consumer Finance
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900.HK WACC - Weighted Average Cost of Capital

The WACC of Aeon Credit Service Asia Co Ltd (900.HK) is 6.5%.

The Cost of Equity of Aeon Credit Service Asia Co Ltd (900.HK) is 9.65%.
The Cost of Debt of Aeon Credit Service Asia Co Ltd (900.HK) is 4.25%.

Range Selected
Cost of equity 8.40% - 10.90% 9.65%
Tax rate 16.50% - 16.90% 16.70%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.8% - 7.2% 6.5%
WACC

900.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.93 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 10.90%
Tax rate 16.50% 16.90%
Debt/Equity ratio 1.07 1.07
Cost of debt 4.00% 4.50%
After-tax WACC 5.8% 7.2%
Selected WACC 6.5%

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 (9.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.93) + 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.