8179.HK WACC - Weighted Average Cost of Capital

The WACC of Palinda Group Holdings Ltd (8179.HK) is 7.4%.

The Cost of Equity of Palinda Group Holdings Ltd (8179.HK) is 12.80%.

The Cost of Debt of Palinda Group Holdings Ltd (8179.HK) is 5.80%.

	Range	Selected
Cost of equity	9.00% - 16.60%	12.80%
Tax rate	3.20% - 6.20%	4.70%
Cost of debt	5.10% - 6.50%	5.80%
WACC	6.0% - 8.8%	7.4%

WACC

8179.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.02	1.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	16.60%

Tax rate	3.20%	6.20%
Debt/Equity ratio	2.93	2.93
Cost of debt	5.10%	6.50%

After-tax WACC	6.0%	8.8%


Selected WACC	7.4%

8179.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 8179.HK:

cost_of_equity (12.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.02) + 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.