3813.HK WACC - Weighted Average Cost of Capital
The WACC of Pou Sheng International (Holdings) Ltd (3813.HK) is 6.7%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.6% | 8.85% |
| Tax rate | 27.5% - 30.4% | 28.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.5% - 7.8% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.71 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.6% |
| Tax rate | 27.5% | 30.4% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.5% | 7.8% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3813.HK | Pou Sheng International (Holdings) Ltd | 0.59 | 0.58 | 0.4 |
| 113.HK | Dickson Concepts (International) Ltd | 0.5 | 0.33 | 0.24 |
| 1150.HK | Milan Station Holdings Ltd | 0.16 | 1.05 | 0.95 |
| 1470.HK | Prosper One International Holdings Company Ltd | 0.03 | 1.13 | 1.11 |
| 2528.HK | Forward Fashion (International) Holdings Co Ltd | 4.06 | 0.35 | 0.09 |
| 330.HK | Esprit Holdings Ltd | 7.05 | 0.56 | 0.09 |
| 592.HK | Bossini International Holdings Ltd | 0.49 | 1.31 | 0.97 |
| 709.HK | Giordano International Ltd | 0.32 | 0.59 | 0.48 |
| 887.HK | Emperor Watch & Jewellery Ltd | 0.24 | 0.45 | 0.38 |
| PMV.AX | Premier Investments Ltd | 0.14 | 1.3 | 1.18 |
| Low | High | |
| Unlevered beta | 0.39 | 0.67 |
| Relevered beta | 0.57 | 0.96 |
| Adjusted relevered beta | 0.71 | 0.97 |
3813.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 3813.HK:
cost_of_equity (8.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.71) + 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.