8203.HK WACC - Weighted Average Cost of Capital
The WACC of Kaisun Holdings Ltd (8203.HK) is 6.3%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.2% | 7.25% |
| Tax rate | 10.2% - 13.1% | 11.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 7.1% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.57 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.2% |
| Tax rate | 10.2% | 13.1% |
| Debt/Equity ratio | 0.37 | 0.37 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 7.1% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8203.HK | Kaisun Holdings Ltd | 0.37 | 0.54 | 0.41 |
| 1229.HK | Nan Nan Resources Enterprise Ltd | 1.45 | 0.72 | 0.32 |
| 1621.HK | Vico International Holdings Ltd | 0.48 | 0.43 | 0.3 |
| 65.HK | Grand Ocean Advanced Resources Co Ltd | 0 | 0.86 | 0.86 |
| 704.HK | Huscoke Holdings Ltd | 3.45 | 0.6 | 0.15 |
| 8250.HK | Silk Road Energy Services Group Ltd | 0.03 | -0.27 | -0.27 |
| 8347.HK | F8 Enterprises (Holdings) Group Ltd | 2.79 | -0.12 | -0.04 |
| 8631.HK | Sun Kong Holdings Ltd | 0.18 | 0.41 | 0.35 |
| 92.HK | Champion Technology Holdings Ltd | 0.01 | 0.23 | 0.23 |
| 979.HK | Green Energy Group Ltd | 0.01 | 0.81 | 0.8 |
| Low | High | |
| Unlevered beta | 0.27 | 0.33 |
| Relevered beta | 0.36 | 0.43 |
| Adjusted relevered beta | 0.57 | 0.62 |
8203.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 8203.HK:
cost_of_equity (7.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.57) + 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.