752.HK
Pico Far East Holdings Ltd
Price:  
2.62 
HKD
Volume:  
942,000
Hong Kong | Media

752.HK WACC - Weighted Average Cost of Capital

The WACC of Pico Far East Holdings Ltd (752.HK) is 8.3%.

The Cost of Equity of Pico Far East Holdings Ltd (752.HK) is 9.2%.
The Cost of Debt of Pico Far East Holdings Ltd (752.HK) is 4.25%.

RangeSelected
Cost of equity7.2% - 11.2%9.2%
Tax rate16.3% - 17.4%16.85%
Cost of debt4.0% - 4.5%4.25%
WACC6.6% - 10.0%8.3%
WACC

752.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.721.04
Additional risk adjustments0.0%0.5%
Cost of equity7.2%11.2%
Tax rate16.3%17.4%
Debt/Equity ratio
0.180.18
Cost of debt4.0%4.5%
After-tax WACC6.6%10.0%
Selected WACC8.3%

752.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 752.HK:

cost_of_equity (9.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.72) + 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.