630.HK WACC - Weighted Average Cost of Capital
The WACC of AMCO United Holding Ltd (630.HK) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.5% - 8.2% | 6.85% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 6.9% - 6.9% | 6.9% |
| WACC | 5.5% - 7.8% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.27 | 0.48 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 5.5% | 8.2% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 6.9% | 6.9% |
| After-tax WACC | 5.5% | 7.8% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 630.HK | AMCO United Holding Ltd | 0.16 | -0.29 | -0.25 |
| 032980.KQ | ByOn Co Ltd | 3.58 | -0.76 | -0.2 |
| 1713.TW | Cathay Chemical Works Inc | 0 | 0.37 | 0.37 |
| 2182.HK | Tian Chang Group Holdings Ltd | 0.6 | -0.17 | -0.12 |
| 408.HK | Yip's Chemical Holdings Ltd | 2.38 | 0.38 | 0.13 |
| 541778.BO | Deep Polymers Ltd | 0.38 | -0.31 | -0.24 |
| 746.HK | Lee & Man Chemical Co Ltd | 0.2 | 0.34 | 0.3 |
| 900290.KQ | Great Rich Technologies Ltd | 2.46 | -0.14 | -0.05 |
| CG1.AX | Carbonxt Group Ltd | 0.5 | 0.54 | 0.39 |
| DVL.NS | Dhunseri Ventures Ltd | 0.31 | 1.67 | 1.34 |
| Low | High | |
| Unlevered beta | -0.08 | 0.2 |
| Relevered beta | -0.09 | 0.22 |
| Adjusted relevered beta | 0.27 | 0.48 |
630.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 630.HK:
cost_of_equity (6.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.27) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.