1045.HK WACC - Weighted Average Cost of Capital
The WACC of APT Satellite Holdings Ltd (1045.HK) is 8.6%.
| Range | Selected | |
| Cost of equity | 7.7% - 10.2% | 8.95% |
| Tax rate | 16.4% - 17.6% | 17% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.4% - 9.8% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.81 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 10.2% |
| Tax rate | 16.4% | 17.6% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.4% | 9.8% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1045.HK | APT Satellite Holdings Ltd | 0.06 | 0.26 | 0.25 |
| 1883.HK | CITIC Telecom International Holdings Ltd | 0.5 | 0.5 | 0.35 |
| 300921.SZ | NOVA Technology Corp Ltd | 0.01 | 1.57 | 1.56 |
| 3843.T | FreeBit Co Ltd | 0.5 | 1.03 | 0.73 |
| 603322.SS | Super Telecom Co Ltd | 0.08 | 1.02 | 0.95 |
| ABB.AX | Aussie Broadband Ltd | 0.29 | 0.81 | 0.66 |
| MNF.AX | MNF Group Ltd | 0.04 | -0.02 | -0.02 |
| SLC.AX | Superloop Ltd | 0.04 | 0.72 | 0.69 |
| SYMC.BK | Symphony Communication PCL | 0.38 | 1.8 | 1.37 |
| UWL.AX | Uniti Group Ltd | 0.08 | 1.49 | 1.4 |
| Low | High | |
| Unlevered beta | 0.68 | 0.82 |
| Relevered beta | 0.72 | 0.87 |
| Adjusted relevered beta | 0.81 | 0.91 |
1045.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 1045.HK:
cost_of_equity (8.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.81) + 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.