8221.HK WACC - Weighted Average Cost of Capital
The WACC of PF Group Holdings Ltd (8221.HK) is 5.4%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.7% | 6.6% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 6.1% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.45 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.7% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.62 | 0.62 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 6.1% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8221.HK | PF Group Holdings Ltd | 0.62 | 0.51 | 0.34 |
| 290.HK | China Fortune Financial Group Ltd | 0 | -0.14 | -0.14 |
| 430.HK | Oriental Explorer Holdings Ltd | 0.96 | 0.13 | 0.07 |
| 8001.HK | Orient Securities International Holdings Ltd | 0.01 | -1.73 | -1.71 |
| 8098.HK | CL Group (Holdings) Ltd | 0.29 | 0.16 | 0.13 |
| 8168.HK | Amasse Capital Holdings Ltd | 0.02 | 0.15 | 0.15 |
| 8210.HK | DLC Asia Ltd | 0.04 | 0.65 | 0.63 |
| 8333.HK | Astrum Financial Holdings Ltd | 0.23 | 0.47 | 0.4 |
| 8350.HK | Excalibur Global Financial Holdings Ltd | 0.29 | 0.61 | 0.5 |
| 8540.HK | Victory Securities (Holdings) Company Ltd | 0.26 | 0.12 | 0.1 |
| Low | High | |
| Unlevered beta | 0.12 | 0.23 |
| Relevered beta | 0.18 | 0.33 |
| Adjusted relevered beta | 0.45 | 0.55 |
8221.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 8221.HK:
cost_of_equity (6.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.45) + 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.