The WACC of Pan Hong Holdings Group Ltd (P36.SI) is 7.4%.
Range | Selected | |
Cost of equity | 4.5% - 6.1% | 5.3% |
Tax rate | 40.0% - 41.2% | 40.6% |
Cost of debt | 4.0% - 33.3% | 18.65% |
WACC | 3.7% - 11.0% | 7.4% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.35 | 0.39 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.5% | 6.1% |
Tax rate | 40.0% | 41.2% |
Debt/Equity ratio | 0.57 | 0.57 |
Cost of debt | 4.0% | 33.3% |
After-tax WACC | 3.7% | 11.0% |
Selected WACC | 7.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
P36.SI | Pan Hong Holdings Group Ltd | 0.57 | 0.55 | 0.41 |
1125.HK | Lai Fung Holdings Ltd | 26.12 | 0.32 | 0.02 |
1195.HK | Kingwell Group Ltd | 0 | 1.29 | 1.29 |
1218.HK | Easyknit International Holdings Ltd | 27.37 | -0.07 | 0 |
1560.HK | Star Properties Group (Cayman Islands) Ltd | 19.4 | 0.36 | 0.03 |
2288.HK | Rykadan Capital Ltd | 2.83 | 0.49 | 0.18 |
2892.HK | Million Cities Holdings Ltd | 0 | -0.22 | -0.22 |
313.HK | Richly Field China Development Ltd | 7.68 | 1.51 | 0.27 |
432.HK | Pacific Century Premium Developments Ltd | 24.02 | 0.4 | 0.03 |
938.HK | Man Sang International Ltd | 8.14 | -1.08 | -0.19 |
Low | High | |
Unlevered beta | 0.02 | 0.09 |
Relevered beta | 0.03 | 0.09 |
Adjusted relevered beta | 0.35 | 0.39 |
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 P36.SI:
cost_of_equity (5.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * 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.