1679.HK WACC - Weighted Average Cost of Capital
The WACC of Risecomm Group Holdings Ltd (1679.HK) is 7.8%.
| Range | Selected | |
| Cost of equity | 26.3% - 34.6% | 30.45% |
| Tax rate | 12.3% - 14.9% | 13.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.2% - 9.4% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 3.92 | 4.4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 26.3% | 34.6% |
| Tax rate | 12.3% | 14.9% |
| Debt/Equity ratio | 7.35 | 7.35 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.2% | 9.4% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1679.HK | Risecomm Group Holdings Ltd | 7.35 | 0 | 0 |
| 000670.SZ | Infotmic Co Ltd | 0.14 | 1.86 | 1.65 |
| 002218.SZ | Shenzhen Topraysolar Co Ltd | 0.47 | 1.03 | 0.73 |
| 300139.SZ | Beijing Xiaocheng Technology Stock Co Ltd | 0 | 0.72 | 0.72 |
| 300301.SZ | Shenzhen Changfang Group Co Ltd | 0.22 | 0.97 | 0.82 |
| 600360.SS | JiLin Sino Microelectronics Co Ltd | 0.3 | 1.05 | 0.83 |
| 603421.SS | Qingdao Topscomm Communication Inc | 0.19 | 0.82 | 0.71 |
| 688589.SS | Leaguer Shenzhen MicroElectronics Corp | 0.11 | 1.84 | 1.68 |
| 688689.SS | Changzhou Galaxy Century Microelectronics Co Ltd | 0.17 | 1.73 | 1.5 |
| 712.HK | Comtec Solar Systems Group Ltd | 2.16 | 1.35 | 0.47 |
| Low | High | |
| Unlevered beta | 0.73 | 0.82 |
| Relevered beta | 5.36 | 6.07 |
| Adjusted relevered beta | 3.92 | 4.4 |
1679.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 1679.HK:
cost_of_equity (30.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (3.92) + 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.