1079.HK WACC - Weighted Average Cost of Capital

The WACC of Pine Technology Holdings Ltd (1079.HK) is 11.2%.

The Cost of Equity of Pine Technology Holdings Ltd (1079.HK) is 10.65%.

The Cost of Debt of Pine Technology Holdings Ltd (1079.HK) is 18.20%.

	Range	Selected
Cost of equity	9.10% - 12.20%	10.65%
Tax rate	1.50% - 1.80%	1.65%
Cost of debt	7.00% - 29.40%	18.20%
WACC	9.0% - 13.4%	11.2%

WACC

1079.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.05	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	12.20%

Tax rate	1.50%	1.80%
Debt/Equity ratio	0.08	0.08
Cost of debt	7.00%	29.40%

After-tax WACC	9.0%	13.4%


Selected WACC	11.2%

1079.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 1079.HK:

cost_of_equity (10.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.05) + 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.