8391.HK
Cornerstone Technologies Holdings Ltd
Price:  
0.40 
HKD
Volume:  
440,000.00
Hong Kong | Commercial Services & Supplies
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8391.HK WACC - Weighted Average Cost of Capital

The WACC of Cornerstone Technologies Holdings Ltd (8391.HK) is 5.4%.

The Cost of Equity of Cornerstone Technologies Holdings Ltd (8391.HK) is 5.50%.
The Cost of Debt of Cornerstone Technologies Holdings Ltd (8391.HK) is 5.50%.

Range Selected
Cost of equity 4.60% - 6.40% 5.50%
Tax rate 1.10% - 1.70% 1.40%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.4% - 6.5% 5.4%
WACC

8391.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.28 0.36
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.60% 6.40%
Tax rate 1.10% 1.70%
Debt/Equity ratio 0.51 0.51
Cost of debt 4.00% 7.00%
After-tax WACC 4.4% 6.5%
Selected WACC 5.4%

8391.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 8391.HK:

cost_of_equity (5.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.28) + 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.