8668.HK WACC - Weighted Average Cost of Capital
The WACC of Ying Hai Group Holdings Company Ltd (8668.HK) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.0% - 6.9% | 5.95% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.0% - 6.9% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.36 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 6.9% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.0% | 6.9% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8668.HK | Ying Hai Group Holdings Company Ltd | 0.03 | -0.29 | -0.29 |
| 1235.HK | Travel Expert (Asia) Enterprises Ltd | 0.18 | 0.21 | 0.18 |
| 1620.HK | Cteh Inc | 0.05 | 0.05 | 0.05 |
| 1701.HK | Tu Yi Holding Co Ltd | 0.66 | 0.23 | 0.15 |
| 1901.HK | Feiyang International Holdings Group Ltd | 3.01 | 0.1 | 0.03 |
| 500213.BO | International Travel House Ltd | 0 | 1.33 | 1.33 |
| 900929.SS | Shanghai Jinjiang International Travel Co Ltd | 0.01 | 1.03 | 1.02 |
| ICONIC.KL | Iconic Worldwide Bhd | 0.79 | -0.01 | 0 |
| PANR.JK | Panorama Sentrawisata Tbk PT | 0.48 | 0 | 0 |
| PDES.JK | Destinasi Tirta Nusantara Tbk PT | 0.56 | 0.43 | 0.3 |
| Low | High | |
| Unlevered beta | 0.04 | 0.16 |
| Relevered beta | 0.04 | 0.16 |
| Adjusted relevered beta | 0.36 | 0.44 |
8668.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 8668.HK:
cost_of_equity (5.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.