580.HK WACC - Weighted Average Cost of Capital
The WACC of Sun.King Technology Group Ltd (580.HK) is 10.2%.
| Range | Selected | |
| Cost of equity | 9.6% - 12.0% | 10.8% |
| Tax rate | 36.5% - 43.2% | 39.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 9.1% - 11.3% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.12 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 12.0% |
| Tax rate | 36.5% | 43.2% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 9.1% | 11.3% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 580.HK | Sun.King Technology Group Ltd | 0.08 | 0.84 | 0.81 |
| 002339.SZ | Integrated Electronic Systems Lab Co Ltd | 0.22 | 1.36 | 1.2 |
| 002560.SZ | Henan Tong-Da Cable Co Ltd | 0.5 | 1.37 | 1.05 |
| 002953.SZ | GuangDong Rifeng Electric Cable Co Ltd | 0.26 | 1.12 | 0.97 |
| 300032.SZ | Jinlong Machinery & Electronic Co Ltd | 0.07 | 1.77 | 1.7 |
| 300048.SZ | Hiconics Eco-energy Technology Co Ltd | 0.13 | 1.26 | 1.17 |
| 300265.SZ | Jiangsu Tongguang Electronic Wire&Cable Co Ltd | 0.15 | 1.46 | 1.35 |
| 300444.SZ | Beijing Sojo Electric Co Ltd | 0.44 | 1.34 | 1.06 |
| 300697.SZ | Jiangyin Electrical Alloy Co Ltd | 0.1 | 1.25 | 1.19 |
| 300709.SZ | Jiangsu Gian Technology Co Ltd | 0.06 | 1.52 | 1.47 |
| Low | High | |
| Unlevered beta | 1.13 | 1.19 |
| Relevered beta | 1.18 | 1.25 |
| Adjusted relevered beta | 1.12 | 1.17 |
580.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 580.HK:
cost_of_equity (10.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.12) + 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.