802.HK WACC - Weighted Average Cost of Capital
The WACC of China E-Wallet Payment Group Ltd (802.HK) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.0% | 6.7% |
| Tax rate | 0.4% - 0.5% | 0.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 6.8% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.42 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 8.0% |
| Tax rate | 0.4% | 0.5% |
| Debt/Equity ratio | 0.66 | 0.66 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 6.8% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 802.HK | China E-Wallet Payment Group Ltd | 0.66 | 0.37 | 0.22 |
| 3910.T | MKSystem Corp | 0.71 | 0.45 | 0.26 |
| 7064.T | Howtelevision Inc | 0.18 | 0.17 | 0.14 |
| CENSOF.KL | Censof Holdings Bhd | 0.02 | 1.63 | 1.59 |
| COO.AX | Corum Group Ltd | 0 | -0.01 | -0.01 |
| ECOHLDS.KL | Ecobuilt Holdings Bhd | 0.6 | -0.12 | -0.07 |
| MNC.KL | M N C Wireless Bhd | 0 | -1.11 | -1.11 |
| NEXGRAM.KL | Nexgram Holdings Bhd | 1.01 | -0.04 | -0.02 |
| NOVAMSC.KL | Nova Msc Bhd | 0.1 | 1.19 | 1.08 |
| SYSTECH.KL | Systech Bhd | 0.12 | 0.4 | 0.36 |
| Low | High | |
| Unlevered beta | 0.08 | 0.24 |
| Relevered beta | 0.13 | 0.39 |
| Adjusted relevered beta | 0.42 | 0.59 |
802.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 802.HK:
cost_of_equity (6.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.