1009.HK WACC - Weighted Average Cost of Capital
The WACC of International Entertainment Corp (1009.HK) is 5.4%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.6% | 5.75% |
| Tax rate | 7.8% - 12.1% | 9.95% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.4% - 6.4% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.34 | 0.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 6.6% |
| Tax rate | 7.8% | 12.1% |
| Debt/Equity ratio | 0.63 | 0.63 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.4% | 6.4% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1009.HK | International Entertainment Corp | 0.63 | 0.66 | 0.42 |
| 202.HK | EverChina Intl Holdings Co Ltd | 0.54 | -0.1 | -0.07 |
| 266.HK | Tian Teck Land Ltd | 0.21 | 0.02 | 0.01 |
| 277.HK | Tern Properties Co Ltd | 0.09 | 0.1 | 0.1 |
| 287.HK | Winfair Investment Co Ltd | 0.11 | -0.1 | -0.09 |
| 565.HK | Art Group Holdings Ltd | 0.22 | 0.77 | 0.65 |
| 583.HK | Great Wall Pan Asia Holdings Ltd | 14.03 | 0.01 | 0 |
| 613.HK | Planetree International Development Ltd | 0.28 | -0.05 | -0.04 |
| 75.HK | YT Realty Group Ltd | 42.62 | 1.32 | 0.03 |
| 898.HK | Multifield International Holdings Ltd | 1.92 | 0.33 | 0.12 |
| Low | High | |
| Unlevered beta | 0.01 | 0.06 |
| Relevered beta | 0.01 | 0.09 |
| Adjusted relevered beta | 0.34 | 0.39 |
1009.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 1009.HK:
cost_of_equity (5.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.