1073.HK WACC - Weighted Average Cost of Capital
The WACC of Da Yu Financial Holdings Ltd (1073.HK) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.0% | 6.1% |
| Tax rate | 13.9% - 31.0% | 22.45% |
| Cost of debt | 4.0% - 17.9% | 10.95% |
| WACC | 5.2% - 7.0% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.39 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.0% |
| Tax rate | 13.9% | 31.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 17.9% |
| After-tax WACC | 5.2% | 7.0% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1073.HK | Da Yu Financial Holdings Ltd | 0 | 0.74 | 0.74 |
| 1102.HK | Enviro Energy International Holdings Ltd | 0.12 | 0.3 | 0.27 |
| 1130.HK | China Environmental Resources Group Ltd | 1.11 | 1.06 | 0.55 |
| 217.HK | China Chengtong Development Group Ltd | 7.76 | 0.63 | 0.08 |
| 223.HK | Elife Holdings Ltd | 0.02 | 0.2 | 0.2 |
| 399.HK | Innovative Pharmaceutical Biotech Ltd | 2.54 | -0.16 | -0.05 |
| 512463.BO | Shree Global Tradefin Ltd | 0.02 | 0.04 | 0.04 |
| 8022.HK | Evershine Group Holdings Ltd | 8.71 | 0.8 | 0.1 |
| 8612.HK | World Super Holdings Ltd | 0.66 | 0.23 | 0.15 |
| 988.HK | Silk Road Logistics Holdings Ltd | 5.31 | 0.51 | 0.09 |
| Low | High | |
| Unlevered beta | 0.1 | 0.17 |
| Relevered beta | 0.09 | 0.16 |
| Adjusted relevered beta | 0.39 | 0.44 |
1073.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 1073.HK:
cost_of_equity (6.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.