8331.HK WACC - Weighted Average Cost of Capital

The WACC of PB Group Ltd (8331.HK) is 8.1%.

The Cost of Equity of PB Group Ltd (8331.HK) is 10.40%.

The Cost of Debt of PB Group Ltd (8331.HK) is 7.00%.

	Range	Selected
Cost of equity	9.10% - 11.70%	10.40%
Tax rate	16.20% - 19.20%	17.70%
Cost of debt	7.00% - 7.00%	7.00%
WACC	7.5% - 8.7%	8.1%

WACC

8331.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.03	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	11.70%

Tax rate	16.20%	19.20%
Debt/Equity ratio	1	1
Cost of debt	7.00%	7.00%

After-tax WACC	7.5%	8.7%


Selected WACC	8.1%

8331.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 8331.HK:

cost_of_equity (10.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.03) + 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.