2660.HK
Zengame Technology Holding Ltd
Price:  
2.6 
HKD
Volume:  
654,000
China | Entertainment

2660.HK WACC - Weighted Average Cost of Capital

The WACC of Zengame Technology Holding Ltd (2660.HK) is 11.5%.

The Cost of Equity of Zengame Technology Holding Ltd (2660.HK) is 11.55%.
The Cost of Debt of Zengame Technology Holding Ltd (2660.HK) is 6.45%.

RangeSelected
Cost of equity9.8% - 13.3%11.55%
Tax rate14.1% - 17.0%15.55%
Cost of debt4.0% - 8.9%6.45%
WACC9.7% - 13.3%11.5%
WACC

2660.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta1.151.36
Additional risk adjustments0.0%0.5%
Cost of equity9.8%13.3%
Tax rate14.1%17.0%
Debt/Equity ratio
0.010.01
Cost of debt4.0%8.9%
After-tax WACC9.7%13.3%
Selected WACC11.5%

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 (11.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.15) + 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.