76.HK WACC - Weighted Average Cost of Capital
The WACC of Elate Holdings Ltd (76.HK) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.1% - 6.7% | 5.9% |
| Tax rate | 13.9% - 18.9% | 16.4% |
| Cost of debt | 4.0% - 8.9% | 6.45% |
| WACC | 5.1% - 6.7% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.38 | 0.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 6.7% |
| Tax rate | 13.9% | 18.9% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 8.9% |
| After-tax WACC | 5.1% | 6.7% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 76.HK | Elate Holdings Ltd | 0.02 | 0.08 | 0.08 |
| 1050.HK | Karrie International Holdings Ltd | 0.37 | 0.67 | 0.51 |
| 1710.HK | Trio Industrial Electronics Group Ltd | 1.19 | 0.19 | 0.1 |
| 3336.HK | Ju Teng International Holdings Ltd | 2.55 | 1.37 | 0.44 |
| 40.HK | Gold Peak Industries Holdings Ltd | 4.91 | 0.21 | 0.04 |
| 532.HK | Wong's Kong King International (Holdings) Ltd | 3.56 | 0.13 | 0.03 |
| 8159.HK | Glory Mark Hi-Tech (Holdings) Ltd | 0.35 | -0.02 | -0.01 |
| 8218.HK | Echo International Holdings Group Ltd | 0.22 | -0.03 | -0.03 |
| 99.HK | Wong's International Holdings Ltd | 2.78 | 0.59 | 0.18 |
| 9918.HK | Wise Ally International Holdings Ltd | 2.72 | 0.43 | 0.13 |
| Low | High | |
| Unlevered beta | 0.07 | 0.11 |
| Relevered beta | 0.07 | 0.12 |
| Adjusted relevered beta | 0.38 | 0.41 |
76.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 76.HK:
cost_of_equity (5.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.38) + 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.