482.HK
Sandmartin International Holdings Ltd
Price:  
0.09 
HKD
Volume:  
140,220.00
Hong Kong | Communications Equipment
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482.HK WACC - Weighted Average Cost of Capital

The WACC of Sandmartin International Holdings Ltd (482.HK) is 6.8%.

The Cost of Equity of Sandmartin International Holdings Ltd (482.HK) is 9.80%.
The Cost of Debt of Sandmartin International Holdings Ltd (482.HK) is 7.00%.

Range Selected
Cost of equity 6.10% - 13.50% 9.80%
Tax rate 10.30% - 16.60% 13.45%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.2% - 7.4% 6.8%
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 0.54 1.38
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 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 6.2% 7.4%
Selected WACC 6.8%

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 (9.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.54) + 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.