529.HK
SiS International Holdings Ltd
Price:  
1.76 
HKD
Volume:  
74,000
Hong Kong | Electronic Equipment, Instruments & Components

529.HK WACC - Weighted Average Cost of Capital

The WACC of SiS International Holdings Ltd (529.HK) is 5.9%.

The Cost of Equity of SiS International Holdings Ltd (529.HK) is 21.7%.
The Cost of Debt of SiS International Holdings Ltd (529.HK) is 4.3%.

RangeSelected
Cost of equity16.8% - 26.6%21.7%
Tax rate23.0% - 27.0%25%
Cost of debt4.0% - 4.6%4.3%
WACC5.0% - 6.7%5.9%
WACC

529.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta2.333.26
Additional risk adjustments0.0%0.5%
Cost of equity16.8%26.6%
Tax rate23.0%27.0%
Debt/Equity ratio
66
Cost of debt4.0%4.6%
After-tax WACC5.0%6.7%
Selected WACC5.9%

529.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 529.HK:

cost_of_equity (21.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.33) + 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.