8005.HK WACC - Weighted Average Cost of Capital
The WACC of Yuxing Infotech Investment Holdings Ltd (8005.HK) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.1% | 6.2% |
| Tax rate | 9.4% - 11.1% | 10.25% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.2% - 7.0% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.32 | 0.39 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.3% | 7.1% |
| Tax rate | 9.4% | 11.1% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.2% | 7.0% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8005.HK | Yuxing Infotech Investment Holdings Ltd | 0.05 | -0.27 | -0.26 |
| 017250.KQ | Interm Corp | 1.13 | 0.23 | 0.11 |
| 167.HK | IDT International Ltd | 0.26 | -0.14 | -0.12 |
| 176.HK | Superactive Group Co Ltd | 18.35 | 1.11 | 0.06 |
| 2223.HK | Casablanca Group Ltd | 0.34 | -0.53 | -0.4 |
| 2358.HK | Jiu Rong Holdings Ltd | 17.67 | 0.8 | 0.05 |
| 328.HK | Alco Holdings Ltd | 2.45 | 0.95 | 0.3 |
| 396.HK | Hing Lee (Hk) Holdings Ltd | 0.03 | -0.54 | -0.53 |
| 912.HK | Suga International Holdings Ltd | 0.16 | 0.4 | 0.35 |
| 927.HK | Fujikon Industrial Holdings Ltd | 0.02 | 0.33 | 0.32 |
| Low | High | |
| Unlevered beta | -0.02 | 0.08 |
| Relevered beta | -0.01 | 0.09 |
| Adjusted relevered beta | 0.32 | 0.39 |
8005.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 8005.HK:
cost_of_equity (6.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.32) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.