9923.HK WACC - Weighted Average Cost of Capital

The WACC of Yeahka Ltd (9923.HK) is 10.2%.

The Cost of Equity of Yeahka Ltd (9923.HK) is 10.30%.

The Cost of Debt of Yeahka Ltd (9923.HK) is 10.80%.

	Range	Selected
Cost of equity	8.30% - 12.30%	10.30%
Tax rate	13.50% - 17.10%	15.30%
Cost of debt	7.00% - 14.60%	10.80%
WACC	8.1% - 12.3%	10.2%

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	0.91	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	12.30%

Tax rate	13.50%	17.10%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.00%	14.60%

After-tax WACC	8.1%	12.3%


Selected WACC	10.2%

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 (10.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.91) + 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.