3626.HK WACC - Weighted Average Cost of Capital
The WACC of Hang Sang (Siu Po) International Holding Company Ltd (3626.HK) is 5.9%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.8% | 5.85% |
| Tax rate | 4.1% - 4.8% | 4.45% |
| Cost of debt | 6.9% - 7.0% | 6.95% |
| WACC | 4.9% - 6.8% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.26 | 0.35 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 4.9% | 6.8% |
| Tax rate | 4.1% | 4.8% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 6.9% | 7.0% |
| After-tax WACC | 4.9% | 6.8% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3626.HK | Hang Sang (Siu Po) International Holding Company Ltd | 0.01 | -0.77 | -0.77 |
| 1239.HK | Teamway International Group Holdings Ltd | 4.57 | 0.01 | 0 |
| 1335.HK | Sheen Tai Holdings Group Company Ltd | 0.03 | -0.36 | -0.34 |
| 1689.HK | Huaxi Holdings Company Ltd | 0.03 | 0.12 | 0.11 |
| 403.HK | Starlite Holdings Ltd | 1.43 | 0.14 | 0.06 |
| 450.HK | Hung Hing Printing Group Ltd | 0.12 | 0.11 | 0.1 |
| 794.HK | Come Sure Group (Holdings) Ltd | 5.67 | -0.29 | -0.04 |
| AMJUMBO.NS | A and M Jumbo Bags Ltd | 3.02 | 0.15 | 0.04 |
| HPB.VN | PP Pack Making JSC | 0.08 | -0.22 | -0.2 |
| TIRUPATI.NS | Shree Tirupati Balajee FIBC Ltd | 0.09 | -0.32 | -0.29 |
| Low | High | |
| Unlevered beta | -0.11 | 0.02 |
| Relevered beta | -0.1 | 0.03 |
| Adjusted relevered beta | 0.26 | 0.35 |
3626.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 3626.HK:
cost_of_equity (5.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.26) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.