1382.HK WACC - Weighted Average Cost of Capital
The WACC of Pacific Textiles Holdings Ltd (1382.HK) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.3% - 10.6% | 8.45% |
| Tax rate | 13.2% - 14.2% | 13.7% |
| Cost of debt | 4.0% - 5.1% | 4.55% |
| WACC | 5.1% - 8.1% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.57 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 10.6% |
| Tax rate | 13.2% | 14.2% |
| Debt/Equity ratio | 0.69 | 0.69 |
| Cost of debt | 4.0% | 5.1% |
| After-tax WACC | 5.1% | 8.1% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1382.HK | Pacific Textiles Holdings Ltd | 0.69 | 0.6 | 0.38 |
| 000936.SZ | Jiangsu Huaxicun Co Ltd | 0.16 | 1.62 | 1.42 |
| 002394.SZ | Jiangsu Lianfa Textile Co Ltd | 0.42 | 1.34 | 0.98 |
| 2307.HK | Kam Hing International Holdings Ltd | 5.88 | 0.23 | 0.04 |
| 294.HK | Yangtzekiang Garment Ltd | 0 | 0.09 | 0.09 |
| 321.HK | Texwinca Holdings Ltd | 1.14 | 0.51 | 0.26 |
| 3608.HK | Yongsheng Advanced Materials Company Ltd | 0.34 | 0.03 | 0.03 |
| 420.HK | Fountain Set Holdings Ltd | 0.24 | 0.2 | 0.17 |
| VTL.NS | Vardhman Textiles Ltd | 0.09 | 0.99 | 0.92 |
| WELSPUNIND.NS | Welspun India Ltd | 0.17 | 1.11 | 0.97 |
| Low | High | |
| Unlevered beta | 0.22 | 0.6 |
| Relevered beta | 0.36 | 0.96 |
| Adjusted relevered beta | 0.57 | 0.97 |
1382.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 1382.HK:
cost_of_equity (8.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.57) + 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.