9608.HK
Sundy Service Co Ltd
Price:  
0.10 
HKD
Volume:  
100,000.00
China | N/A
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9608.HK WACC - Weighted Average Cost of Capital

The WACC of Sundy Service Co Ltd (9608.HK) is 8.0%.

The Cost of Equity of Sundy Service Co Ltd (9608.HK) is 10.35%.
The Cost of Debt of Sundy Service Co Ltd (9608.HK) is 7.70%.

Range Selected
Cost of equity 8.60% - 12.10% 10.35%
Tax rate 26.70% - 28.90% 27.80%
Cost of debt 7.70% - 7.70% 7.70%
WACC 7.1% - 8.8% 8.0%
WACC

9608.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.95 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 12.10%
Tax rate 26.70% 28.90%
Debt/Equity ratio 1 1
Cost of debt 7.70% 7.70%
After-tax WACC 7.1% 8.8%
Selected WACC 8.0%

9608.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 9608.HK:

cost_of_equity (10.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.95) + 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.