333.HK WACC - Weighted Average Cost of Capital
The WACC of Top Form International Ltd (333.HK) is 7.5%.
| Range | Selected | |
| Cost of equity | 5.1% - 6.9% | 6% |
| Tax rate | 25.3% - 40.2% | 32.75% |
| Cost of debt | 4.2% - 22.9% | 13.55% |
| WACC | 3.9% - 11.2% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.37 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 6.9% |
| Tax rate | 25.3% | 40.2% |
| Debt/Equity ratio | 1.71 | 1.71 |
| Cost of debt | 4.2% | 22.9% |
| After-tax WACC | 3.9% | 11.2% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 333.HK | Top Form International Ltd | 1.71 | 0.29 | 0.14 |
| 1100.HK | Mainland Headwear Holdings Ltd | 0.42 | -0.2 | -0.16 |
| 125.HK | Sun Hing Vision Group Holdings Ltd | 0.56 | 0.16 | 0.12 |
| 1388.HK | Embry Holdings Ltd | 1.86 | 0.44 | 0.21 |
| 1520.HK | CEFC Hong Kong Financial Investment Company Ltd | 0.07 | -0.4 | -0.38 |
| 1825.HK | Sterling Group Holdings Ltd | 5.97 | 0.17 | 0.04 |
| 213.HK | National Electronics Holdings Ltd | 14.39 | 0.15 | 0.02 |
| 3326.HK | Perfect Group International Holdings Ltd | 0.2 | 0.48 | 0.43 |
| 3398.HK | China Ting Group Holdings Ltd | 1.94 | -0.12 | -0.05 |
| 6838.HK | Winox Holdings Ltd | 0.45 | 0.05 | 0.04 |
| Low | High | |
| Unlevered beta | 0.03 | 0.07 |
| Relevered beta | 0.06 | 0.15 |
| Adjusted relevered beta | 0.37 | 0.43 |
333.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 333.HK:
cost_of_equity (6.00%) = 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.