9926.HK WACC - Weighted Average Cost of Capital

The WACC of Akeso Inc (9926.HK) is 8.1%.

The Cost of Equity of Akeso Inc (9926.HK) is 8.35%.

The Cost of Debt of Akeso Inc (9926.HK) is 5.50%.

	Range	Selected
Cost of equity	6.30% - 10.40%	8.35%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.1% - 10.1%	8.1%

WACC

9926.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.57	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	10.40%

Tax rate	22.10%	22.30%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.00%	7.00%

After-tax WACC	6.1%	10.1%


Selected WACC	8.1%

9926.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 9926.HK:

cost_of_equity (8.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.57) + 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.