8229.HK WACC - Weighted Average Cost of Capital
The WACC of Future Data Group Ltd (8229.HK) is 7.5%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.3% | 7.7% |
| Tax rate | 22.2% - 33.3% | 27.75% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.0% - 9.0% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.54 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.3% |
| Tax rate | 22.2% | 33.3% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.0% | 9.0% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8229.HK | Future Data Group Ltd | 0.04 | 0.55 | 0.53 |
| 010280.KQ | SsangYong Information & Communications Corp | 0.71 | -0.16 | -0.1 |
| 029480.KQ | Lix Solution Co Ltd | 0.28 | 1.39 | 1.15 |
| 030790.KS | BK Tops Co Ltd | 1.16 | -0.27 | -0.15 |
| 042500.KQ | RingNet Co Ltd | 0 | 0.35 | 0.35 |
| 052460.KQ | Icraft Co Ltd | 0.38 | 1.12 | 0.87 |
| 053980.KQ | Osangjaiel Co Ltd | 0 | 0.83 | 0.83 |
| 115500.KQ | Korea Computer & Systems Inc | 0 | 1.17 | 1.16 |
| 136540.KQ | Wins Co Ltd | 0 | 0.22 | 0.22 |
| 173130.KQ | Opasnet Co Ltd | 0.4 | 0.26 | 0.2 |
| Low | High | |
| Unlevered beta | 0.3 | 0.65 |
| Relevered beta | 0.31 | 0.67 |
| Adjusted relevered beta | 0.54 | 0.78 |
8229.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 8229.HK:
cost_of_equity (7.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.54) + 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.