9923.HK WACC - Weighted Average Cost of Capital

The WACC of Yeahka Ltd (9923.HK) is 10.0%.

The Cost of Equity of Yeahka Ltd (9923.HK) is 10.50%.

The Cost of Debt of Yeahka Ltd (9923.HK) is 8.75%.

	Range	Selected
Cost of equity	9.00% - 12.00%	10.50%
Tax rate	13.50% - 17.10%	15.30%
Cost of debt	6.10% - 11.40%	8.75%
WACC	8.4% - 11.6%	10.0%

WACC

9923.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.02	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	12.00%

Tax rate	13.50%	17.10%
Debt/Equity ratio	0.19	0.19
Cost of debt	6.10%	11.40%

After-tax WACC	8.4%	11.6%


Selected WACC	10.0%

9923.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 9923.HK:

cost_of_equity (10.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.02) + 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.