1540.HK WACC - Weighted Average Cost of Capital
The WACC of Left Field Printing Group Ltd (1540.HK) is 8.0%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.9% | 8.2% |
| Tax rate | 31.0% - 31.3% | 31.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.4% - 9.6% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.61 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.9% |
| Tax rate | 31.0% | 31.3% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.4% | 9.6% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1540.HK | Left Field Printing Group Ltd | 0.05 | -0.16 | -0.16 |
| 1172.HK | Magnus Concordia Group Ltd | 1.7 | 0.75 | 0.35 |
| 1631.HK | REF Holdings Ltd | 0.28 | 0.96 | 0.8 |
| 1975.HK | Sun Hing Printing Holdings Ltd | 0.61 | 0.64 | 0.45 |
| 55.HK | Neway Group Holdings Ltd | 4.43 | 0.09 | 0.02 |
| 7901.T | Matsumoto Inc | 0.54 | 1.03 | 0.75 |
| 8385.HK | Prosperous Printing Co Ltd | 12.18 | 1.87 | 0.2 |
| MTAG.KL | Mtag Group Bhd | 0.01 | 0.87 | 0.87 |
| REPRO.NS | Repro India Ltd | 0.06 | 1.69 | 1.62 |
| SALEE.BK | Salee Industry PCL | 0.04 | 1.24 | 1.21 |
| Low | High | |
| Unlevered beta | 0.41 | 0.77 |
| Relevered beta | 0.42 | 0.79 |
| Adjusted relevered beta | 0.61 | 0.86 |
1540.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 1540.HK:
cost_of_equity (8.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.61) + 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.