1532.HK
China Partytime Culture Holdings Ltd
Price:  
0.11 
HKD
Volume:  
15,000.00
China | Textiles, Apparel & Luxury Goods
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1532.HK WACC - Weighted Average Cost of Capital

The WACC of China Partytime Culture Holdings Ltd (1532.HK) is 6.0%.

The Cost of Equity of China Partytime Culture Holdings Ltd (1532.HK) is 6.10%.
The Cost of Debt of China Partytime Culture Holdings Ltd (1532.HK) is 6.00%.

Range Selected
Cost of equity 5.10% - 7.10% 6.10%
Tax rate 11.70% - 19.50% 15.60%
Cost of debt 5.00% - 7.00% 6.00%
WACC 5.0% - 6.9% 6.0%
WACC

1532.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.28 0.4
Additional risk adjustments 0.5% 1.0%
Cost of equity 5.10% 7.10%
Tax rate 11.70% 19.50%
Debt/Equity ratio 0.15 0.15
Cost of debt 5.00% 7.00%
After-tax WACC 5.0% 6.9%
Selected WACC 6.0%

1532.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 1532.HK:

cost_of_equity (6.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.28) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.