1561.HK WACC - Weighted Average Cost of Capital
The WACC of Pan Asia Data Holdings Inc (1561.HK) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.8% - 7.9% | 6.85% |
| Tax rate | 8.5% - 12.5% | 10.5% |
| Cost of debt | 5.2% - 7.0% | 6.1% |
| WACC | 5.1% - 6.7% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.48 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 7.9% |
| Tax rate | 8.5% | 12.5% |
| Debt/Equity ratio | 1.92 | 1.92 |
| Cost of debt | 5.2% | 7.0% |
| After-tax WACC | 5.1% | 6.7% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1561.HK | Pan Asia Data Holdings Inc | 1.92 | -1.09 | -0.4 |
| 014440.KS | Youngbo Chemical Co Ltd | 0 | -0.3 | -0.3 |
| 023450.KS | Dongnam Chemical Co Ltd | 0.22 | 0.11 | 0.09 |
| 024890.KS | Daewon Chemical Co Ltd | 2.04 | 0.37 | 0.13 |
| 1084.HK | Green Future Food Hydrocolloid Marine Science Co Ltd | 0.9 | 0.36 | 0.2 |
| 1861.HK | Precious Dragon Technology Holdings Ltd | 0.1 | 0.15 | 0.13 |
| 1932.HK | CPM Group Ltd | 1.17 | -0.01 | 0 |
| 2341.HK | Ecogreen International Group Ltd | 1.84 | 0.18 | 0.07 |
| 609.HK | Tiande Chemical Holdings Ltd | 0.23 | 0.22 | 0.19 |
| 701.HK | CNT Group Ltd | 0.35 | 0.3 | 0.23 |
| Low | High | |
| Unlevered beta | 0.08 | 0.13 |
| Relevered beta | 0.22 | 0.36 |
| Adjusted relevered beta | 0.48 | 0.57 |
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 (6.85%) = 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.