224.HK WACC - Weighted Average Cost of Capital

The WACC of Pioneer Global Group Ltd (224.HK) is 7.0%.

The Cost of Equity of Pioneer Global Group Ltd (224.HK) is 9.30%.

The Cost of Debt of Pioneer Global Group Ltd (224.HK) is 7.70%.

	Range	Selected
Cost of equity	6.90% - 11.70%	9.30%
Tax rate	13.30% - 19.30%	16.30%
Cost of debt	4.00% - 11.40%	7.70%
WACC	4.3% - 9.8%	7.0%

WACC

224.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.67	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	11.70%

Tax rate	13.30%	19.30%
Debt/Equity ratio	3.29	3.29
Cost of debt	4.00%	11.40%

After-tax WACC	4.3%	9.8%


Selected WACC	7.0%

224.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 224.HK:

cost_of_equity (9.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.67) + 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.