8136.HK WACC - Weighted Average Cost of Capital

The WACC of IMS Group Holdings Ltd (8136.HK) is 7.1%.

The Cost of Equity of IMS Group Holdings Ltd (8136.HK) is 7.25%.

The Cost of Debt of IMS Group Holdings Ltd (8136.HK) is 5.75%.

	Range	Selected
Cost of equity	5.50% - 9.00%	7.25%
Tax rate	14.50% - 15.10%	14.80%
Cost of debt	4.00% - 7.50%	5.75%
WACC	5.3% - 8.8%	7.1%

WACC

8136.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.43	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	9.00%

Tax rate	14.50%	15.10%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.00%	7.50%

After-tax WACC	5.3%	8.8%


Selected WACC	7.1%

8136.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 8136.HK:

cost_of_equity (7.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.43) + 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.