1079.HK WACC - Weighted Average Cost of Capital

The WACC of Pine Technology Holdings Ltd (1079.HK) is 11.1%.

The Cost of Equity of Pine Technology Holdings Ltd (1079.HK) is 10.40%.

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

	Range	Selected
Cost of equity	9.00% - 11.80%	10.40%
Tax rate	1.50% - 1.80%	1.65%
Cost of debt	7.00% - 29.40%	18.20%
WACC	8.8% - 13.5%	11.1%

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	1.02	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.80%

Tax rate	1.50%	1.80%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.00%	29.40%

After-tax WACC	8.8%	13.5%


Selected WACC	11.1%

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 (10.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.02) + 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.