1943.HK WACC - Weighted Average Cost of Capital
The WACC of Silver Tide Holdings Ltd (1943.HK) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.6% | 6.5% |
| Tax rate | 6.1% - 9.5% | 7.8% |
| Cost of debt | 5.5% - 7.0% | 6.25% |
| WACC | 5.4% - 7.6% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.43 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.6% |
| Tax rate | 6.1% | 9.5% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.5% | 7.0% |
| After-tax WACC | 5.4% | 7.6% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1943.HK | Silver Tide Holdings Ltd | 0 | 0.33 | 0.33 |
| 1429.HK | Skymission Group Holdings Ltd | 0.73 | 0.75 | 0.45 |
| 1472.HK | Sang Hing Holdings (International) Ltd | 0.02 | 0.52 | 0.51 |
| 1500.HK | IN Construction Holdings Ltd | 0.26 | 0.35 | 0.28 |
| 1546.HK | Thelloy Development Group Ltd | 0.3 | -0.04 | -0.03 |
| 1557.HK | K H Group Holdings Ltd | 0.38 | 0.2 | 0.15 |
| 1870.HK | Acme International Holdings Ltd | 0.46 | -0.81 | -0.57 |
| 3878.HK | Vicon Holdings Ltd | 0.1 | 0.15 | 0.14 |
| 784.HK | Ling Yui Holdings Ltd | 0.71 | 1.2 | 0.72 |
| 8423.HK | Chi Ho Development Holdings Ltd | 2.88 | 0.33 | 0.09 |
| Low | High | |
| Unlevered beta | 0.14 | 0.3 |
| Relevered beta | 0.15 | 0.3 |
| Adjusted relevered beta | 0.43 | 0.53 |
1943.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 1943.HK:
cost_of_equity (6.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.43) + 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.