8011.HK
Polyard Petroleum International Group Ltd
Price:  
0.16 
HKD
Volume:  
300,000.00
Hong Kong | Oil, Gas & Consumable Fuels
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8011.HK WACC - Weighted Average Cost of Capital

The WACC of Polyard Petroleum International Group Ltd (8011.HK) is 7.9%.

The Cost of Equity of Polyard Petroleum International Group Ltd (8011.HK) is 8.45%.
The Cost of Debt of Polyard Petroleum International Group Ltd (8011.HK) is 5.00%.

Range Selected
Cost of equity 5.80% - 11.10% 8.45%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.6% - 10.3% 7.9%
WACC

8011.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.49 1.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 11.10%
Tax rate 22.10% 22.30%
Debt/Equity ratio 0.13 0.13
Cost of debt 5.00% 5.00%
After-tax WACC 5.6% 10.3%
Selected WACC 7.9%

8011.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 8011.HK:

cost_of_equity (8.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.49) + 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.