2660.HK WACC - Weighted Average Cost of Capital

The WACC of Zengame Technology Holding Ltd (2660.HK) is 11.2%.

The Cost of Equity of Zengame Technology Holding Ltd (2660.HK) is 11.25%.

The Cost of Debt of Zengame Technology Holding Ltd (2660.HK) is 5.50%.

	Range	Selected
Cost of equity	9.30% - 13.20%	11.25%
Tax rate	14.10% - 17.00%	15.55%
Cost of debt	4.00% - 7.00%	5.50%
WACC	9.3% - 13.2%	11.2%

WACC

2660.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.08	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	13.20%

Tax rate	14.10%	17.00%
Debt/Equity ratio	0	0
Cost of debt	4.00%	7.00%

After-tax WACC	9.3%	13.2%


Selected WACC	11.2%

2660.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 2660.HK:

cost_of_equity (11.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.08) + 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.