2111.HK WACC - Weighted Average Cost of Capital
The WACC of Best Pacific International Holdings Ltd (2111.HK) is 9.1%.
| Range | Selected | |
| Cost of equity | 11.4% - 15.3% | 13.35% |
| Tax rate | 11.3% - 12.0% | 11.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.9% - 10.3% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.42 | 1.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.4% | 15.3% |
| Tax rate | 11.3% | 12.0% |
| Debt/Equity ratio | 0.78 | 0.78 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.9% | 10.3% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2111.HK | Best Pacific International Holdings Ltd | 0.78 | 0.57 | 0.34 |
| 000936.SZ | Jiangsu Huaxicun Co Ltd | 0.17 | 1.67 | 1.45 |
| 002427.SZ | Zhejiang Unifull Industrial Fibre Co Ltd | 0.11 | 1.24 | 1.13 |
| 002486.SZ | Shanghai Challenge Textile Co Ltd | 0.02 | 1.52 | 1.49 |
| 002516.SZ | Kuangda Technology Group Co Ltd | 0.01 | 1.21 | 1.19 |
| 300918.SZ | Shandong Nanshan Zhishang Sci-Tech Co Ltd | 0.17 | 1.49 | 1.29 |
| 600070.SS | Zhejiang Furun Digital Technology Co Ltd | 0.49 | 0.23 | 0.16 |
| 600448.SS | Huafang Co Ltd | 0.52 | 1.32 | 0.91 |
| 601599.SS | Zhewen Pictures Group Co Ltd | 0.2 | 1.19 | 1.01 |
| 603889.SS | Zhejiang Xinao Textiles Inc | 0.33 | 0.87 | 0.67 |
| Low | High | |
| Unlevered beta | 0.97 | 1.16 |
| Relevered beta | 1.63 | 1.96 |
| Adjusted relevered beta | 1.42 | 1.64 |
2111.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 2111.HK:
cost_of_equity (13.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.42) + 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.