8066.HK WACC - Weighted Average Cost of Capital
The WACC of Phoenitron Holdings Ltd (8066.HK) is 8.1%.
| Range | Selected | |
| Cost of equity | 6.2% - 11.5% | 8.85% |
| Tax rate | 0.1% - 0.3% | 0.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.7% - 10.4% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.56 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 11.5% |
| Tax rate | 0.1% | 0.3% |
| Debt/Equity ratio | 0.32 | 0.32 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.7% | 10.4% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8066.HK | Phoenitron Holdings Ltd | 0.32 | -0.58 | -0.44 |
| 070300.KQ | XCure Corp | 0.08 | 0.02 | 0.01 |
| 1079.HK | Pine Technology Holdings Ltd | 0.08 | 1.25 | 1.16 |
| 1263.HK | Pc Partner Group Ltd | 0.31 | 1.09 | 0.84 |
| 164.HK | China Baoli Technologies Holdings Ltd | 1.25 | 0.95 | 0.42 |
| 2028.HK | Jolimark Holdings Ltd | 4.48 | -0.45 | -0.08 |
| 2086.HK | HNA Technology Investments Holdings Ltd | 0.05 | 0.96 | 0.92 |
| 334.HK | China Display Optoelectronics Technology Holdings Ltd | 0.01 | 1.32 | 1.31 |
| 517399.BO | VXL Instruments Ltd | 0.45 | -0.02 | -0.01 |
| 7855.T | Cardinal Co Ltd | 0.06 | 1.03 | 0.97 |
| Low | High | |
| Unlevered beta | 0.26 | 0.87 |
| Relevered beta | 0.34 | 1.15 |
| Adjusted relevered beta | 0.56 | 1.1 |
8066.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 8066.HK:
cost_of_equity (8.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.