9992.HK
Pop Mart International Group Ltd
Price:  
197.70 
HKD
Volume:  
5,299,476.00
China | Specialty Retail
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9992.HK WACC - Weighted Average Cost of Capital

The WACC of Pop Mart International Group Ltd (9992.HK) is 9.2%.

The Cost of Equity of Pop Mart International Group Ltd (9992.HK) is 9.25%.
The Cost of Debt of Pop Mart International Group Ltd (9992.HK) is 5.00%.

Range Selected
Cost of equity 7.60% - 10.90% 9.25%
Tax rate 25.00% - 25.80% 25.40%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.6% - 10.8% 9.2%
WACC

9992.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.8 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.90%
Tax rate 25.00% 25.80%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 7.6% 10.8%
Selected WACC 9.2%

9992.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 9992.HK:

cost_of_equity (9.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.8) + 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.