1561.HK WACC - Weighted Average Cost of Capital

The WACC of Pan Asia Data Holdings Inc (1561.HK) is 6.7%.

The Cost of Equity of Pan Asia Data Holdings Inc (1561.HK) is 7.35%.

The Cost of Debt of Pan Asia Data Holdings Inc (1561.HK) is 7.25%.

	Range	Selected
Cost of equity	5.80% - 8.90%	7.35%
Tax rate	8.50% - 12.50%	10.50%
Cost of debt	7.00% - 7.50%	7.25%
WACC	6.3% - 7.1%	6.7%

WACC

1561.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.48	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	8.90%

Tax rate	8.50%	12.50%
Debt/Equity ratio	3.18	3.18
Cost of debt	7.00%	7.50%

After-tax WACC	6.3%	7.1%


Selected WACC	6.7%

1561.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 1561.HK:

cost_of_equity (7.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.48) + 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.