482.HK WACC - Weighted Average Cost of Capital

The WACC of Sandmartin International Holdings Ltd (482.HK) is 7.0%.

The Cost of Equity of Sandmartin International Holdings Ltd (482.HK) is 10.50%.

The Cost of Debt of Sandmartin International Holdings Ltd (482.HK) is 7.00%.

	Range	Selected
Cost of equity	7.50% - 13.50%	10.50%
Tax rate	10.30% - 16.60%	13.45%
Cost of debt	7.00% - 7.00%	7.00%
WACC	6.5% - 7.4%	7.0%

WACC

482.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.78	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	13.50%

Tax rate	10.30%	16.60%
Debt/Equity ratio	3.85	3.85
Cost of debt	7.00%	7.00%

After-tax WACC	6.5%	7.4%


Selected WACC	7.0%

482.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 482.HK:

cost_of_equity (10.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.78) + 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.