8179.HK WACC - Weighted Average Cost of Capital
The WACC of Palinda Group Holdings Ltd (8179.HK) is 7.6%.
| Range | Selected | |
| Cost of equity | 9.1% - 16.7% | 12.9% |
| Tax rate | 3.2% - 6.2% | 4.7% |
| Cost of debt | 5.1% - 6.5% | 5.8% |
| WACC | 6.1% - 9.2% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.04 | 1.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 16.7% |
| Tax rate | 3.2% | 6.2% |
| Debt/Equity ratio | 2.46 | 2.46 |
| Cost of debt | 5.1% | 6.5% |
| After-tax WACC | 6.1% | 9.2% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8179.HK | Palinda Group Holdings Ltd | 2.46 | 1.19 | 0.35 |
| 1371.HK | China Lotsynergy Holdings Ltd | 0.54 | 1.36 | 0.9 |
| 8052.HK | Luk Hing Entertainment Group Holdings Ltd | 2 | 0.76 | 0.26 |
| 8213.HK | StarGlory Holdings Co Ltd | 0.8 | -0.54 | -0.31 |
| 8412.HK | BCI Group Holdings Ltd | 0.42 | 1.4 | 1 |
| 8428.HK | CBK Holdings Ltd | 0.08 | 1.73 | 1.6 |
| 8432.HK | Bar Pacific Group Holdings Ltd | 5.23 | 0.31 | 0.05 |
| 8447.HK | MS Concept Ltd | 2.19 | 0.5 | 0.16 |
| 8519.HK | Jia Group Holdings Ltd | 0.17 | 0.67 | 0.58 |
| 9262.T | Silver Life Co Ltd | 0.2 | 0.98 | 0.82 |
| Low | High | |
| Unlevered beta | 0.32 | 0.67 |
| Relevered beta | 1.06 | 2.25 |
| Adjusted relevered beta | 1.04 | 1.84 |
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 (12.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.04) + 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.