1051.HK WACC - Weighted Average Cost of Capital
The WACC of G-Resources Group Ltd (1051.HK) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.7% | 8.1% |
| Tax rate | 0.0% - 0.0% | 0% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 7.4% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.61 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.7% |
| Tax rate | 0.0% | 0.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 7.4% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1051.HK | G-Resources Group Ltd | 0.97 | 0.45 | 0.23 |
| 133.HK | China Merchants China Direct Investments Ltd | 0 | 0.82 | 0.81 |
| 3623.HK | China Success Finance Group Holdings Ltd | 0.27 | 0.58 | 0.46 |
| 3848.HK | Wealthy Way Group Ltd | 0.1 | 0.99 | 0.89 |
| 412.HK | China Shandong Hi-Speed Financial Group Ltd | 0.84 | 0.6 | 0.33 |
| 508.HK | Dingyi Group Investment Ltd | 3.26 | 0.19 | 0.04 |
| 530499.BO | A K Capital Services Ltd | 3.81 | 0.61 | 0.13 |
| 629.HK | Yue Da International Holdings Ltd | 0.32 | 0.01 | 0.01 |
| 899.HK | Asia Resources Holdings Ltd | 0.09 | 1.54 | 1.4 |
| CVW.AX | Clearview Wealth Ltd | 0.34 | -0.49 | -0.37 |
| UNCR.TA | Unet Credit Finance Services Ltd | 2.71 | 0.96 | 0.26 |
| Low | High | |
| Unlevered beta | 0.23 | 0.33 |
| Relevered beta | 0.42 | 0.76 |
| Adjusted relevered beta | 0.61 | 0.84 |
1051.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 1051.HK:
cost_of_equity (8.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.61) + 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.