ICLK WACC - Weighted Average Cost of Capital
The WACC of iClick Interactive Asia Group Ltd (ICLK) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.6% | 6.6% |
| Tax rate | 4.0% - 8.0% | 6% |
| Cost of debt | 4.4% - 7.0% | 5.7% |
| WACC | 5.5% - 7.5% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.37 | 0.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.6% |
| Tax rate | 4.0% | 8.0% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.4% | 7.0% |
| After-tax WACC | 5.5% | 7.5% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ICLK | iClick Interactive Asia Group Ltd | 0.04 | -1.21 | -1.16 |
| AIM.TO | Aimia Inc | 0.69 | 0.8 | 0.48 |
| BOMN | Boston Omaha Corp | 0.03 | 0.39 | 0.38 |
| FLNT | Fluent Inc | 0.74 | 0.82 | 0.48 |
| NCMI | National Cinemedia Inc | 0.02 | 0.23 | 0.23 |
| SCOR | Comscore Inc | 2.09 | 1.14 | 0.38 |
| SGRP | SPAR Group Inc | 0.75 | -0.34 | -0.2 |
| UCPA | United Communications Partners Inc | 0.2 | -0.78 | -0.66 |
| 1993.HK | Asiaray Media Group Ltd | 3.39 | 0.2 | 0.05 |
| 8093.HK | Million Stars Holdings Ltd | 0.15 | 0.3 | 0.27 |
| Low | High | |
| Unlevered beta | 0.16 | 0.31 |
| Relevered beta | 0.06 | 0.22 |
| Adjusted relevered beta | 0.37 | 0.48 |
ICLK'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 ICLK:
cost_of_equity (6.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.37) + 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.