92.HK WACC - Weighted Average Cost of Capital
The WACC of Champion Technology Holdings Ltd (92.HK) is 5.9%.
| Range | Selected | |
| Cost of equity | 4.8% - 7.1% | 5.95% |
| Tax rate | 4.1% - 4.6% | 4.35% |
| Cost of debt | 7.0% - 8.2% | 7.6% |
| WACC | 4.8% - 7.1% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.32 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 7.1% |
| Tax rate | 4.1% | 4.6% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 7.0% | 8.2% |
| After-tax WACC | 4.8% | 7.1% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 92.HK | Champion Technology Holdings Ltd | 0.01 | 0.23 | 0.23 |
| 342.HK | Newocean Energy Holdings Ltd | 117.89 | 0.39 | 0 |
| 346.HK | Yanchang Petroleum International Ltd | 2.03 | 1.32 | 0.45 |
| 8250.HK | Silk Road Energy Services Group Ltd | 0.03 | -0.27 | -0.27 |
| 8347.HK | F8 Enterprises (Holdings) Group Ltd | 2.79 | -0.12 | -0.03 |
| 852.HK | Strong Petrochemical Holdings Ltd | 0.46 | 0.23 | 0.16 |
| 8631.HK | Sun Kong Holdings Ltd | 0.18 | 0.41 | 0.35 |
| 979.HK | Green Energy Group Ltd | 0.01 | 0.81 | 0.8 |
| HTC.VN | HocMon Trade JSC | 0.13 | -0.1 | -0.09 |
| PPY.VN | PetroVietnam Oil Phu Yen JSC | 0.46 | -0.31 | -0.21 |
| Low | High | |
| Unlevered beta | -0.01 | 0.19 |
| Relevered beta | -0.01 | 0.19 |
| Adjusted relevered beta | 0.32 | 0.46 |
92.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 92.HK:
cost_of_equity (5.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.32) + 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.