9923.HK WACC - Weighted Average Cost of Capital

The WACC of Yeahka Ltd (9923.HK) is 9.0%.

The Cost of Equity of Yeahka Ltd (9923.HK) is 11.35%.

The Cost of Debt of Yeahka Ltd (9923.HK) is 5.60%.

	Range	Selected
Cost of equity	9.80% - 12.90%	11.35%
Tax rate	14.00% - 17.10%	15.55%
Cost of debt	5.20% - 6.00%	5.60%
WACC	7.9% - 10.1%	9.0%

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	1.16	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.90%

Tax rate	14.00%	17.10%
Debt/Equity ratio	0.56	0.56
Cost of debt	5.20%	6.00%

After-tax WACC	7.9%	10.1%


Selected WACC	9.0%

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 (11.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.16) + 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.