40.HK WACC - Weighted Average Cost of Capital
The WACC of Gold Peak Industries Holdings Ltd (40.HK) is 8.9%.
| Range | Selected | |
| Cost of equity | 22.7% - 34.1% | 28.4% |
| Tax rate | 15.0% - 20.5% | 17.75% |
| Cost of debt | 4.5% - 11.4% | 7.95% |
| WACC | 5.9% - 11.8% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 3.31 | 4.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 22.7% | 34.1% |
| Tax rate | 15.0% | 20.5% |
| Debt/Equity ratio | 8.01 | 8.01 |
| Cost of debt | 4.5% | 11.4% |
| After-tax WACC | 5.9% | 11.8% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 40.HK | Gold Peak Industries Holdings Ltd | 8.01 | 0.18 | 0.02 |
| 049070.KQ | Intops Co Ltd | 0.11 | 1.6 | 1.46 |
| 1639.HK | AKM Industrial Co Ltd | 0.1 | 0.46 | 0.42 |
| 1888.HK | Kingboard Laminates Holdings Ltd | 0.15 | 0.93 | 0.82 |
| 2078.HK | Panasialum Holdings Co Ltd | 1.7 | -0.37 | -0.15 |
| 2367.TW | Unitech Printed Circuit Board Corp | 0.35 | 1.25 | 0.96 |
| 2788.HK | Yorkey Optical International (Cayman) Ltd | 0.01 | 0.74 | 0.74 |
| 698.HK | Tongda Group Holdings Ltd | 1.38 | 1.46 | 0.68 |
| 8375.HK | Vertical International Holdings Ltd | 0 | 0.84 | 0.84 |
| 894.HK | Man Yue Technology Holdings Ltd | 5.83 | 0.19 | 0.03 |
| Low | High | |
| Unlevered beta | 0.57 | 0.77 |
| Relevered beta | 4.45 | 5.97 |
| Adjusted relevered beta | 3.31 | 4.33 |
40.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 40.HK:
cost_of_equity (28.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (3.31) + 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.