1022.HK
Feiyu Technology International Company Ltd
Price:  
0.27 
HKD
Volume:  
780,000
China | Entertainment

1022.HK WACC - Weighted Average Cost of Capital

The WACC of Feiyu Technology International Company Ltd (1022.HK) is 6.6%.

The Cost of Equity of Feiyu Technology International Company Ltd (1022.HK) is 6.85%.
The Cost of Debt of Feiyu Technology International Company Ltd (1022.HK) is 5.85%.

RangeSelected
Cost of equity5.2% - 8.5%6.85%
Tax rate3.9% - 4.6%4.25%
Cost of debt4.7% - 7.0%5.85%
WACC5.1% - 8.2%6.6%
WACC

1022.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.30.59
Additional risk adjustments0.5%1.0%
Cost of equity5.2%8.5%
Tax rate3.9%4.6%
Debt/Equity ratio
0.210.21
Cost of debt4.7%7.0%
After-tax WACC5.1%8.2%
Selected WACC6.6%

1022.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 1022.HK:

cost_of_equity (6.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.3) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.