3326.HK WACC - Weighted Average Cost of Capital

The WACC of Perfect Group International Holdings Ltd (3326.HK) is 6.0%.

The Cost of Equity of Perfect Group International Holdings Ltd (3326.HK) is 6.35%.

The Cost of Debt of Perfect Group International Holdings Ltd (3326.HK) is 5.40%.

	Range	Selected
Cost of equity	5.40% - 7.30%	6.35%
Tax rate	33.80% - 41.60%	37.70%
Cost of debt	4.00% - 6.80%	5.40%
WACC	5.1% - 6.9%	6.0%

WACC

3326.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.42	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	7.30%

Tax rate	33.80%	41.60%
Debt/Equity ratio	0.13	0.13
Cost of debt	4.00%	6.80%

After-tax WACC	5.1%	6.9%


Selected WACC	6.0%

3326.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 3326.HK:

cost_of_equity (6.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.