3344.HK
GTI Holdings Ltd
Price:  
0.02 
HKD
Volume:  
8,380,000.00
Hong Kong | Textiles, Apparel & Luxury Goods
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3344.HK WACC - Weighted Average Cost of Capital

The WACC of GTI Holdings Ltd (3344.HK) is 7.6%.

The Cost of Equity of GTI Holdings Ltd (3344.HK) is 33.05%.
The Cost of Debt of GTI Holdings Ltd (3344.HK) is 5.50%.

Range Selected
Cost of equity 19.70% - 46.40% 33.05%
Tax rate 0.70% - 0.80% 0.75%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.2% - 10.0% 7.6%
WACC

3344.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 2.82 6.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 19.70% 46.40%
Tax rate 0.70% 0.80%
Debt/Equity ratio 11.72 11.72
Cost of debt 4.00% 7.00%
After-tax WACC 5.2% 10.0%
Selected WACC 7.6%

3344.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 3344.HK:

cost_of_equity (33.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.82) + 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.