8337.HK
Directel Holdings Ltd
Price:  
0.13 
HKD
Volume:  
60,000.00
Hong Kong | Wireless Telecommunication Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

8337.HK WACC - Weighted Average Cost of Capital

The WACC of Directel Holdings Ltd (8337.HK) is 7.3%.

The Cost of Equity of Directel Holdings Ltd (8337.HK) is 7.35%.
The Cost of Debt of Directel Holdings Ltd (8337.HK) is 6.40%.

Range Selected
Cost of equity 5.70% - 9.00% 7.35%
Tax rate 2.20% - 2.70% 2.45%
Cost of debt 5.80% - 7.00% 6.40%
WACC 5.7% - 8.9% 7.3%
WACC

8337.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.47 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 9.00%
Tax rate 2.20% 2.70%
Debt/Equity ratio 0.02 0.02
Cost of debt 5.80% 7.00%
After-tax WACC 5.7% 8.9%
Selected WACC 7.3%

8337.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 8337.HK:

cost_of_equity (7.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.47) + 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.