1710.HK WACC - Weighted Average Cost of Capital
The WACC of Trio Industrial Electronics Group Ltd (1710.HK) is 13.0%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.4% | 7.75% |
| Tax rate | 18.4% - 20.6% | 19.5% |
| Cost of debt | 20.0% - 22.9% | 21.45% |
| WACC | 11.8% - 14.2% | 13.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.54 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.4% |
| Tax rate | 18.4% | 20.6% |
| Debt/Equity ratio | 1.24 | 1.24 |
| Cost of debt | 20.0% | 22.9% |
| After-tax WACC | 11.8% | 14.2% |
| Selected WACC | 13.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1710.HK | Trio Industrial Electronics Group Ltd | 1.24 | 0.24 | 0.12 |
| 1050.HK | Karrie International Holdings Ltd | 0.34 | 0.48 | 0.38 |
| 1143.HK | Link-Asia International Medtech Group Ltd | 1.29 | 0.78 | 0.38 |
| 1480.HK | Yan Tat Group Holdings Ltd | 0.25 | 0.55 | 0.45 |
| 1611.HK | Huobi Technology Holdings Ltd | 0 | 0.54 | 0.54 |
| 8070.HK | Keen Ocean International Holding Ltd | 0.27 | 0.38 | 0.32 |
| 8159.HK | Glory Mark Hi-Tech (Holdings) Ltd | 1.15 | -0.02 | -0.01 |
| 8218.HK | Echo International Holdings Group Ltd | 0.22 | -0.03 | -0.02 |
| 99.HK | Wong's International Holdings Ltd | 2.89 | 0.56 | 0.17 |
| 9918.HK | Wise Ally International Holdings Ltd | 2.65 | 0.44 | 0.14 |
| Low | High | |
| Unlevered beta | 0.16 | 0.34 |
| Relevered beta | 0.31 | 0.69 |
| Adjusted relevered beta | 0.54 | 0.79 |
1710.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 1710.HK:
cost_of_equity (7.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.54) + 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.