250.HK WACC - Weighted Average Cost of Capital
The WACC of Sino-I Technology Ltd (250.HK) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.6% | 7.3% |
| Tax rate | 4.4% - 9.1% | 6.75% |
| Cost of debt | 7.0% - 8.6% | 7.8% |
| WACC | 6.2% - 8.4% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.52 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.6% |
| Tax rate | 4.4% | 9.1% |
| Debt/Equity ratio | 0.37 | 0.37 |
| Cost of debt | 7.0% | 8.6% |
| After-tax WACC | 6.2% | 8.4% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 250.HK | Sino-I Technology Ltd | 0.37 | 0.31 | 0.23 |
| 1037.HK | Maxnerva Technology Services Ltd | 0.06 | 0.44 | 0.42 |
| 1460.HK | ICO Group Ltd | 0.33 | 0.24 | 0.18 |
| 1985.HK | Microware Group Ltd | 0.05 | -0.06 | -0.05 |
| 300051.SZ | Xiamen 35.com Technology Co Ltd | 0.5 | 1.47 | 1 |
| 3915.T | TerraSky Co Ltd | 0.01 | 1.32 | 1.32 |
| 46.HK | Computer and Technologies Holdings Ltd | 0.05 | 0.37 | 0.36 |
| 8081.HK | Hang Tai Yue Group Holdings Ltd | 0.36 | 0.07 | 0.05 |
| 8319.HK | Expert Systems Holdings Ltd | 0.84 | 0 | 0 |
| INET.BK | Internet Thailand PCL | 0.46 | 0.98 | 0.68 |
| Low | High | |
| Unlevered beta | 0.21 | 0.38 |
| Relevered beta | 0.28 | 0.52 |
| Adjusted relevered beta | 0.52 | 0.68 |
250.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 250.HK:
cost_of_equity (7.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.52) + 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.