3830.HK WACC - Weighted Average Cost of Capital
The WACC of Kiddieland International Ltd (3830.HK) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.5% | 6.5% |
| Tax rate | 7.0% - 10.1% | 8.55% |
| Cost of debt | 6.1% - 7.0% | 6.55% |
| WACC | 5.5% - 7.4% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.44 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.5% |
| Tax rate | 7.0% | 10.1% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 6.1% | 7.0% |
| After-tax WACC | 5.5% | 7.4% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3830.HK | Kiddieland International Ltd | 0.06 | 0.79 | 0.75 |
| 1348.HK | Quali-Smart Holdings Ltd | 0.37 | 0.22 | 0.17 |
| 180.HK | Kader Holdings Co Ltd | 2.67 | 0.41 | 0.12 |
| 209.HK | Winshine Science Co Ltd | 9.78 | 0.31 | 0.03 |
| 348.HK | China Healthwise Holdings Ltd | 1.53 | 0.81 | 0.34 |
| 361.HK | Sino Golf Holdings Ltd | 0.46 | 0.14 | 0.09 |
| 381.HK | Kiu Hung International Holdings Ltd | 0.67 | -1.77 | -1.1 |
| 765.HK | Perfectech International Holdings Ltd | 0.14 | 0.61 | 0.54 |
| 8545.HK | Amuse Group Holding Ltd | 0.15 | 0.32 | 0.28 |
| 869.HK | Playmates Toys Ltd | 0.02 | 0.25 | 0.25 |
| Low | High | |
| Unlevered beta | 0.15 | 0.26 |
| Relevered beta | 0.16 | 0.28 |
| Adjusted relevered beta | 0.44 | 0.52 |
3830.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 3830.HK:
cost_of_equity (6.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.44) + 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.