529.HK WACC - Weighted Average Cost of Capital

The WACC of SiS International Holdings Ltd (529.HK) is 4.9%.

The Cost of Equity of SiS International Holdings Ltd (529.HK) is 15.90%.

The Cost of Debt of SiS International Holdings Ltd (529.HK) is 4.25%.

	Range	Selected
Cost of equity	10.20% - 21.60%	15.90%
Tax rate	29.00% - 33.20%	31.10%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.0% - 5.9%	4.9%

WACC

529.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.23	2.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	21.60%

Tax rate	29.00%	33.20%
Debt/Equity ratio	5.47	5.47
Cost of debt	4.00%	4.50%

After-tax WACC	4.0%	5.9%


Selected WACC	4.9%

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 (15.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.23) + 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.