8111.HK WACC - Weighted Average Cost of Capital
The WACC of China Technology Industry Group Ltd (8111.HK) is 5.9%.
| Range | Selected | |
| Cost of equity | 4.2% - 9.3% | 6.75% |
| Tax rate | 2.5% - 5.6% | 4.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 7.2% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.22 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.2% | 9.3% |
| Tax rate | 2.5% | 5.6% |
| Debt/Equity ratio | 0.8 | 0.8 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 7.2% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8111.HK | China Technology Industry Group Ltd | 0.8 | 0.75 | 0.42 |
| 070300.KQ | XCure Corp | 0.08 | -0.09 | -0.08 |
| 164.HK | China Baoli Technologies Holdings Ltd | 1.17 | 0.91 | 0.42 |
| 2028.HK | Jolimark Holdings Ltd | 5.2 | -0.48 | -0.08 |
| 2086.HK | HNA Technology Investments Holdings Ltd | 0.04 | 0.98 | 0.94 |
| 2443.TW | Lead Data Inc | 0.01 | -0.68 | -0.67 |
| 3315.HK | Goldpac Group Ltd | 0.02 | 0.34 | 0.34 |
| 334.HK | China Display Optoelectronics Technology Holdings Ltd | 0 | 1.33 | 1.33 |
| 8050.HK | Quantum Thinking Ltd | 0 | -0.36 | -0.36 |
| 8066.HK | Phoenitron Holdings Ltd | 0.27 | -0.55 | -0.44 |
| Low | High | |
| Unlevered beta | -0.08 | 0.37 |
| Relevered beta | -0.16 | 0.66 |
| Adjusted relevered beta | 0.22 | 0.77 |
8111.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 8111.HK:
cost_of_equity (6.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.22) + 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.