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%.

	Range	Selected
Cost of equity	9.80% - 13.30%	11.55%
Tax rate	14.10% - 17.00%	15.55%
Cost of debt	4.00% - 8.90%	6.45%
WACC	9.7% - 13.3%	11.5%

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	1.15	1.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	13.30%

Tax rate	14.10%	17.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	8.90%

After-tax WACC	9.7%	13.3%


Selected WACC	11.5%

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.