115.HK WACC - Weighted Average Cost of Capital

The WACC of Grand Field Group Holdings Ltd (115.HK) is 4.9%.

The Cost of Equity of Grand Field Group Holdings Ltd (115.HK) is 7.50%.

The Cost of Debt of Grand Field Group Holdings Ltd (115.HK) is 6.30%.

	Range	Selected
Cost of equity	5.90% - 9.10%	7.50%
Tax rate	11.60% - 34.50%	23.05%
Cost of debt	5.60% - 7.00%	6.30%
WACC	5.0% - 4.9%	4.9%

WACC

115.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.51	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	9.10%

Tax rate	11.60%	34.50%
Debt/Equity ratio	14.86	14.86
Cost of debt	5.60%	7.00%

After-tax WACC	5.0%	4.9%


Selected WACC	4.9%

115.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 115.HK:

cost_of_equity (7.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.51) + 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.