1561.HK
Pan Asia Data Holdings Inc
Price:  
0.09 
HKD
Volume:  
340,000.00
Hong Kong | Chemicals
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1561.HK WACC - Weighted Average Cost of Capital

The WACC of Pan Asia Data Holdings Inc (1561.HK) is 5.9%.

The Cost of Equity of Pan Asia Data Holdings Inc (1561.HK) is 6.85%.
The Cost of Debt of Pan Asia Data Holdings Inc (1561.HK) is 6.10%.

Range Selected
Cost of equity 5.80% - 7.90% 6.85%
Tax rate 8.50% - 12.50% 10.50%
Cost of debt 5.20% - 7.00% 6.10%
WACC 5.1% - 6.7% 5.9%
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 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.90%
Tax rate 8.50% 12.50%
Debt/Equity ratio 1.92 1.92
Cost of debt 5.20% 7.00%
After-tax WACC 5.1% 6.7%
Selected WACC 5.9%

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.