718.HK
Tai United Holdings Ltd
Price:  
0.06 
HKD
Volume:  
145,000.00
Hong Kong | Trading Companies & Distributors
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

718.HK WACC - Weighted Average Cost of Capital

The WACC of Tai United Holdings Ltd (718.HK) is 10.7%.

The Cost of Equity of Tai United Holdings Ltd (718.HK) is 7.30%.
The Cost of Debt of Tai United Holdings Ltd (718.HK) is 13.35%.

Range Selected
Cost of equity 5.70% - 8.90% 7.30%
Tax rate 12.40% - 15.10% 13.75%
Cost of debt 7.00% - 19.70% 13.35%
WACC 6.1% - 15.3% 10.7%
WACC

718.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.47 0.72
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 8.90%
Tax rate 12.40% 15.10%
Debt/Equity ratio 4.49 4.49
Cost of debt 7.00% 19.70%
After-tax WACC 6.1% 15.3%
Selected WACC 10.7%

718.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 718.HK:

cost_of_equity (7.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.47) + 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.