Pak Fah Yeow International Ltd
HKEX:239
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Pak Fah Yeow International Ltd
HKEX:239
|
HK |
|
M
|
Mce Holdings Bhd
KLSE:MCEHLDG
|
MY |
|
H
|
Headway Advanced Materials Inc
TWSE:1776
|
TW |
|
V
|
Vodafone Group PLC
OTC:VODPF
|
UK |
|
Touyun Biotech Group Ltd
HKEX:1332
|
HK |
|
Z
|
ZimVie Inc
NASDAQ:ZIMV
|
US |
|
Bank Polska Kasa Opieki SA
LSE:0DP0
|
PL |
|
M
|
MYND Life Sciences Inc
CNSX:MYND
|
CA |
|
Recruit Holdings Co Ltd
TSE:6098
|
JP |
|
H
|
Hitek Global Inc
NASDAQ:HKIT
|
CN |
|
O
|
Oak Street Health Inc
F:HE6
|
US |
|
Ferrotec Corp
F:FER
|
JP |
|
S
|
Sri Trang Gloves (Thailand) PCL
SET:STGT
|
TH |
|
Advanced Info Service PCL
SET:ADVANC
|
TH |
|
Atomic Minerals Corp
XTSX:ATOM
|
CA |
|
SEGRO PLC
LSE:SGRO
|
UK |
|
iPower Inc
NASDAQ:IPW
|
US |
|
J
|
Jiangnan Group Ltd
HKEX:1366
|
CN |
|
Stonebridge Acquisition Corp
NASDAQ:FAAS
|
US |
|
B
|
Bohai Leasing Co Ltd
SZSE:000415
|
CN |
|
Sankhya Infotech Ltd
BSE:532972
|
IN |
|
A
|
Aeon Hokkaido Corp
TSE:7512
|
JP |
|
A
|
Alarko Gayrimenkul Yatirim Ortakligi AS
IST:ALGYO.E
|
TR |
|
T
|
Tus Pharmaceutical Group Co Ltd
SZSE:000590
|
CN |
Discount Rate
Cost of Equity
Discount Rate
Pak Fah Yeow International Ltd's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 7.74%.
The Beta, indicating the stock's volatility relative to the market, is 0.97, while the current Risk-Free Rate, based on government bond yields, is 3.69%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
WACC
Discount Rate
Pak Fah Yeow International Ltd's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax.
The WACC stands at 7.74%. This includes the cost of equity at 7.74%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 8.3%, reflecting the interest rate on
Pak Fah Yeow International Ltd's debt adjusted for tax benefits. The weight of debt in the capital structure is 0.63%.
What is Pak Fah Yeow International Ltd's discount rate?
Pak Fah Yeow International Ltd
's current Cost of Equity is 7.74%, while its WACC stands at 7.74%.
The selection of the appropriate discount rate is contingent on the type of cash flows being discounted.
For Equity Valuation: When valuing equity, especially in scenarios where you are discounting cash flows to equity holders (such as Net Income, Earnings Per Share (EPS), or Free Cash Flow to Equity), the Cost of Equity should be used.
For Firm Valuation: In contrast, when valuing the entire firm and discounting cash flows available to both debt and equity holders (like Free Cash Flow to the Firm), the Weighted Average Cost of Capital (WACC) is the appropriate rate."
How is Cost of Equity for Pak Fah Yeow International Ltd calculated?
The Cost of Equity represents the return a company must offer investors to compensate for the risk of investing in its stock. It's calculated using the Capital Asset Pricing Model (CAPM), which combines the risk-free rate, the stock's beta, and the equity risk premium (ERP).
This model considers the inherent risk of investing in the stock compared to a risk-free investment and the market's overall risk.
Here is how we calculate the cost of equity for
Pak Fah Yeow International Ltd
How is WACC for Pak Fah Yeow International Ltd calculated?
WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company’s entire operations.
The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure.
Here is how we calculate WACC for
Pak Fah Yeow International Ltd
