8029.HK WACC - Weighted Average Cost of Capital
The WACC of Sun International Group Ltd (8029.HK) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.5% | 6.45% |
| Tax rate | 1.3% - 3.2% | 2.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 6.5% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.33 | 0.45 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.4% | 7.5% |
| Tax rate | 1.3% | 3.2% |
| Debt/Equity ratio | 0.57 | 0.57 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 6.5% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8029.HK | Sun International Group Ltd | 0.49 | 0.68 | 0.46 |
| 1827.HK | Miricor Enterprises Holdings Ltd | 0.2 | -0.05 | -0.05 |
| 2262.HK | Steve Leung Design Group Ltd | 0.04 | 0.42 | 0.4 |
| 2700.HK | Green International Holdings Ltd | 0.1 | 0 | 0 |
| 79.HK | Century Legend (Holdings) Ltd | 3.12 | 0.01 | 0 |
| 8176.HK | SuperRobotics Holdings Ltd | 2.52 | 0.83 | 0.24 |
| 8181.HK | Shi Shi Services Ltd | 0.14 | -0.22 | -0.19 |
| 8411.HK | K W Nelson Interior Design and Contracting Group Ltd | 0.01 | 0.09 | 0.09 |
| 919.HK | Modern Healthcare Technology Holdings Ltd | 0.93 | -0.29 | -0.15 |
| 922.HK | Anxian Yuan China Holdings Ltd | 0.05 | 0.17 | 0.16 |
| Low | High | |
| Unlevered beta | 0 | 0.11 |
| Relevered beta | 0 | 0.18 |
| Adjusted relevered beta | 0.33 | 0.45 |
8029.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 8029.HK:
cost_of_equity (6.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + 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.