1223.HK WACC - Weighted Average Cost of Capital
The WACC of Symphony Holdings Ltd (1223.HK) is 8.7%.
| Range | Selected | |
| Cost of equity | 5.0% - 7.5% | 6.25% |
| Tax rate | 2.3% - 4.1% | 3.2% |
| Cost of debt | 4.0% - 22.9% | 13.45% |
| WACC | 4.6% - 12.7% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.36 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 7.5% |
| Tax rate | 2.3% | 4.1% |
| Debt/Equity ratio | 0.57 | 0.57 |
| Cost of debt | 4.0% | 22.9% |
| After-tax WACC | 4.6% | 12.7% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1223.HK | Symphony Holdings Ltd | 0.57 | 0.06 | 0.04 |
| 1150.HK | Milan Station Holdings Ltd | 0.16 | 1.05 | 0.91 |
| 1255.HK | TATA Health International Holdings Ltd | 0.7 | -0.37 | -0.22 |
| 128.HK | ENM Holdings Ltd | 0.01 | 0.35 | 0.35 |
| 1470.HK | Prosper One International Holdings Company Ltd | 0.03 | 1.13 | 1.1 |
| 2882.HK | Hong Kong Resources Holdings Co Ltd | 11.24 | 0.12 | 0.01 |
| 330.HK | Esprit Holdings Ltd | 7.05 | 0.56 | 0.07 |
| 592.HK | Bossini International Holdings Ltd | 0.49 | 1.31 | 0.89 |
| 8547.HK | Pacific Legend Group Ltd | 0.32 | -0.59 | -0.45 |
| ZONE.JK | Mega Perintis Tbk PT | 0.36 | -0.04 | -0.03 |
| Low | High | |
| Unlevered beta | 0.03 | 0.18 |
| Relevered beta | 0.04 | 0.28 |
| Adjusted relevered beta | 0.36 | 0.52 |
1223.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 1223.HK:
cost_of_equity (6.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.