1561.HK WACC - Weighted Average Cost of Capital

The WACC of Pan Asia Data Holdings Inc (1561.HK) is 9.9%.

The Cost of Equity of Pan Asia Data Holdings Inc (1561.HK) is 6.25%.

The Cost of Debt of Pan Asia Data Holdings Inc (1561.HK) is 12.55%.

	Range	Selected
Cost of equity	4.90% - 7.60%	6.25%
Tax rate	8.50% - 12.50%	10.50%
Cost of debt	5.20% - 19.90%	12.55%
WACC	4.8% - 14.9%	9.9%

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	0.34	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	7.60%

Tax rate	8.50%	12.50%
Debt/Equity ratio	2.98	2.98
Cost of debt	5.20%	19.90%

After-tax WACC	4.8%	14.9%


Selected WACC	9.9%

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 (6.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.