8521.HK
ST International Holdings Company Ltd
Price:  
0.78 
HKD
Volume:  
10,000
Hong Kong | Textiles, Apparel & Luxury Goods

8521.HK WACC - Weighted Average Cost of Capital

The WACC of ST International Holdings Company Ltd (8521.HK) is 5.7%.

The Cost of Equity of ST International Holdings Company Ltd (8521.HK) is 5.75%.
The Cost of Debt of ST International Holdings Company Ltd (8521.HK) is 5.9%.

RangeSelected
Cost of equity5.0% - 6.5%5.75%
Tax rate6.6% - 9.7%8.15%
Cost of debt4.8% - 7.0%5.9%
WACC4.9% - 6.5%5.7%
WACC

8521.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.350.38
Additional risk adjustments0.0%0.5%
Cost of equity5.0%6.5%
Tax rate6.6%9.7%
Debt/Equity ratio
0.070.07
Cost of debt4.8%7.0%
After-tax WACC4.9%6.5%
Selected WACC5.7%

8521.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 8521.HK:

cost_of_equity (5.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.35) + 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.