567.HK WACC - Weighted Average Cost of Capital

The WACC of Daisho Microline Holdings Ltd (567.HK) is 5.6%.

The Cost of Equity of Daisho Microline Holdings Ltd (567.HK) is 5.60%.

The Cost of Debt of Daisho Microline Holdings Ltd (567.HK) is 12.40%.

	Range	Selected
Cost of equity	4.90% - 6.30%	5.60%
Tax rate	0.70% - 1.00%	0.85%
Cost of debt	7.00% - 17.80%	12.40%
WACC	4.9% - 6.3%	5.6%

WACC

567.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.34	0.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	6.30%

Tax rate	0.70%	1.00%
Debt/Equity ratio	0	0
Cost of debt	7.00%	17.80%

After-tax WACC	4.9%	6.3%


Selected WACC	5.6%

567.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 567.HK:

cost_of_equity (5.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.