113.HK WACC - Weighted Average Cost of Capital
The WACC of Dickson Concepts (International) Ltd (113.HK) is 7.7%.
| Range | Selected | |
| Cost of equity | 7.4% - 11.9% | 9.65% |
| Tax rate | 7.6% - 10.1% | 8.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.2% - 9.3% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.75 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 11.9% |
| Tax rate | 7.6% | 10.1% |
| Debt/Equity ratio | 0.49 | 0.49 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.2% | 9.3% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 113.HK | Dickson Concepts (International) Ltd | 0.49 | 0.34 | 0.24 |
| 1150.HK | Milan Station Holdings Ltd | 0.17 | 1.09 | 0.94 |
| 1470.HK | Prosper One International Holdings Company Ltd | 0.02 | 1.19 | 1.17 |
| 2528.HK | Forward Fashion (International) Holdings Co Ltd | 4.14 | 0.26 | 0.05 |
| 2882.HK | Hong Kong Resources Holdings Co Ltd | 11.13 | 0.09 | 0.01 |
| 592.HK | Bossini International Holdings Ltd | 0.49 | 1.31 | 0.9 |
| 709.HK | Giordano International Ltd | 0.33 | 0.6 | 0.46 |
| 887.HK | Emperor Watch & Jewellery Ltd | 0.19 | 0.46 | 0.39 |
| ARVINDFASN.NS | Arvind Fashions Ltd | 0.19 | 1.39 | 1.18 |
| HLG.NZ | Hallenstein Glasson Holdings Ltd | 0.17 | 0.93 | 0.8 |
| Low | High | |
| Unlevered beta | 0.43 | 0.84 |
| Relevered beta | 0.63 | 1.22 |
| Adjusted relevered beta | 0.75 | 1.15 |
113.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 113.HK:
cost_of_equity (9.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.75) + 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.