752.HK WACC - Weighted Average Cost of Capital
The WACC of Pico Far East Holdings Ltd (752.HK) is 8.3%.
| Range | Selected | |
| Cost of equity | 7.2% - 11.2% | 9.2% |
| Tax rate | 16.3% - 17.4% | 16.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.6% - 10.0% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.72 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 11.2% |
| Tax rate | 16.3% | 17.4% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.6% | 10.0% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 752.HK | Pico Far East Holdings Ltd | 0.18 | 0.4 | 0.35 |
| 002878.SZ | Beijing Yuanlong Yato Culture Dissemination Co Ltd | 0.11 | 1.08 | 0.99 |
| 1993.HK | Asiaray Media Group Ltd | 4.39 | 0.34 | 0.07 |
| 205.HK | SEEC Media Group Ltd | 0.13 | 1.92 | 1.74 |
| 300612.SZ | Shunya International Martech Beijing Co Ltd | 0.02 | 1.52 | 1.49 |
| 4767.T | TOW Co Ltd | 0.06 | 0.57 | 0.55 |
| 8130.HK | Dadi International Group Ltd | 16.06 | 0.82 | 0.06 |
| 888.HK | Bison Finance Group Ltd | 0.76 | 1.45 | 0.88 |
| 9625.T | Cerespo Co Ltd | 0.09 | 0.47 | 0.44 |
| ARIP.BK | ARIP PCL | 0 | 1.72 | 1.72 |
| Low | High | |
| Unlevered beta | 0.51 | 0.93 |
| Relevered beta | 0.58 | 1.06 |
| Adjusted relevered beta | 0.72 | 1.04 |
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.