531.HK WACC - Weighted Average Cost of Capital

The WACC of Samson Holding Ltd (531.HK) is 5.6%.

The Cost of Equity of Samson Holding Ltd (531.HK) is 5.75%.

The Cost of Debt of Samson Holding Ltd (531.HK) is 6.05%.

	Range	Selected
Cost of equity	4.40% - 7.10%	5.75%
Tax rate	7.20% - 12.90%	10.05%
Cost of debt	4.00% - 8.10%	6.05%
WACC	4.1% - 7.1%	5.6%

WACC

531.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.26	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.40%	7.10%

Tax rate	7.20%	12.90%
Debt/Equity ratio	0.76	0.76
Cost of debt	4.00%	8.10%

After-tax WACC	4.1%	7.1%


Selected WACC	5.6%

531.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 531.HK:

cost_of_equity (5.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.26) + 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.