2668.HK WACC - Weighted Average Cost of Capital
The WACC of Pak Tak International Ltd (2668.HK) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.4% | 6.25% |
| Tax rate | 9.8% - 24.1% | 16.95% |
| Cost of debt | 6.3% - 7.0% | 6.65% |
| WACC | 5.3% - 6.6% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.37 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.4% |
| Tax rate | 9.8% | 24.1% |
| Debt/Equity ratio | 0.58 | 0.58 |
| Cost of debt | 6.3% | 7.0% |
| After-tax WACC | 5.3% | 6.6% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2668.HK | Pak Tak International Ltd | 0.58 | 0.08 | 0.05 |
| 013990.KQ | Agabang & Company | 0.02 | 0.04 | 0.04 |
| 1100.HK | Mainland Headwear Holdings Ltd | 0.42 | -0.2 | -0.15 |
| 1346.HK | Lever Style Corp | 0 | 0.35 | 0.35 |
| 1709.HK | DL Holdings Group Ltd | 0.07 | 0.4 | 0.37 |
| 2030.HK | Cabbeen Fashion Ltd | 0.29 | -0.12 | -0.09 |
| 3860.HK | Speed Apparel Holding Ltd | 0.02 | 0.55 | 0.54 |
| 3998.HK | Bosideng International Holdings Ltd | 0.07 | 0.63 | 0.6 |
| 6838.HK | Winox Holdings Ltd | 0.45 | 0.05 | 0.04 |
| 918.HK | State Energy Group International Assets Holdings Ltd | 0.01 | -0.12 | -0.12 |
| Low | High | |
| Unlevered beta | 0.04 | 0.17 |
| Relevered beta | 0.06 | 0.25 |
| Adjusted relevered beta | 0.37 | 0.5 |
2668.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 2668.HK:
cost_of_equity (6.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.37) + 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.