96.HK WACC - Weighted Average Cost of Capital

The WACC of Yusei Holdings Ltd (96.HK) is 8.7%.

The Cost of Equity of Yusei Holdings Ltd (96.HK) is 18.70%.

The Cost of Debt of Yusei Holdings Ltd (96.HK) is 5.75%.

	Range	Selected
Cost of equity	14.60% - 22.80%	18.70%
Tax rate	2.00% - 2.90%	2.45%
Cost of debt	5.50% - 6.00%	5.75%
WACC	7.5% - 9.8%	8.7%

WACC

96.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.96	2.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	22.80%

Tax rate	2.00%	2.90%
Debt/Equity ratio	3.28	3.28
Cost of debt	5.50%	6.00%

After-tax WACC	7.5%	9.8%


Selected WACC	8.7%

96.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 96.HK:

cost_of_equity (18.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.96) + 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.