8601.HK WACC - Weighted Average Cost of Capital
The WACC of Boltek Holdings Ltd (8601.HK) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.9% - 8.4% | 7.15% |
| Tax rate | 13.9% - 14.6% | 14.25% |
| Cost of debt | 4.0% - 5.3% | 4.65% |
| WACC | 5.8% - 8.2% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.51 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 8.4% |
| Tax rate | 13.9% | 14.6% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 5.3% |
| After-tax WACC | 5.8% | 8.2% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8601.HK | Boltek Holdings Ltd | 0.04 | 0.28 | 0.27 |
| 1246.HK | Boill Healthcare Holdings Ltd | 29.53 | -0.23 | -0.01 |
| 1751.HK | Kingland Group Holdings Ltd | 0.19 | 0.27 | 0.24 |
| 1894.HK | Hang Yick Holdings Co Ltd | 0.02 | 1.22 | 1.2 |
| 8023.HK | Kwong Man Kee Group Ltd | 0.08 | -0.44 | -0.42 |
| 8366.HK | Zhejiang United Investment Holdings Group Ltd | 0.5 | 0.69 | 0.48 |
| 8422.HK | WT Group Holdings Ltd | 0.01 | 0.45 | 0.44 |
| 8460.HK | Basetrophy Group Holdings Ltd | 0.57 | -0.41 | -0.27 |
| 9929.HK | Sem Holdings Ltd | 0.07 | 0.63 | 0.6 |
| 9938.HK | Wah Wo Holdings Group Ltd | 0.11 | 0.65 | 0.6 |
| Low | High | |
| Unlevered beta | 0.25 | 0.46 |
| Relevered beta | 0.27 | 0.48 |
| Adjusted relevered beta | 0.51 | 0.65 |
8601.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 8601.HK:
cost_of_equity (7.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.51) + 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.