8271.HK WACC - Weighted Average Cost of Capital
The WACC of Global Digital Creations Holdings Ltd (8271.HK) is 5.5%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.2% | 5.55% |
| Tax rate | 18.1% - 25.1% | 21.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.9% - 6.2% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.33 | 0.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 6.2% |
| Tax rate | 18.1% | 25.1% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.9% | 6.2% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8271.HK | Global Digital Creations Holdings Ltd | 0 | 0.47 | 0.47 |
| 326.HK | China Star Entertainment Ltd | 0.45 | 0.04 | 0.03 |
| 391.HK | Mei Ah Entertainment Group Ltd | 0.36 | -0.24 | -0.19 |
| 491.HK | Emperor Culture Group Ltd | 12.73 | 0.82 | 0.08 |
| 680.HK | Nan Hai Corporation Ltd | 9.09 | 0.17 | 0.02 |
| 8078.HK | China Creative Digital Entertainment Ltd | 105.33 | 0.45 | 0.01 |
| 8220.HK | Bingo Group Holdings Ltd | 0.05 | -0.22 | -0.21 |
| 8228.HK | National Arts Entertainment and Culture Group Ltd | 53.72 | 0.31 | 0.01 |
| 8282.HK | Gameone Holdings Ltd | 0.15 | -0.49 | -0.44 |
| SW1.AX | Swift Media Ltd | 0.7 | 0.01 | 0 |
| Low | High | |
| Unlevered beta | 0.01 | 0.01 |
| Relevered beta | 0 | 0.01 |
| Adjusted relevered beta | 0.33 | 0.34 |
8271.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 8271.HK:
cost_of_equity (5.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + 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.