1195.HK WACC - Weighted Average Cost of Capital
The WACC of Kingwell Group Ltd (1195.HK) is 7.0%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.0% | 7.05% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 8.0% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.54 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.0% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 8.0% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1195.HK | Kingwell Group Ltd | 0 | 1.29 | 1.29 |
| 1218.HK | Easyknit International Holdings Ltd | 27.37 | -0.07 | 0 |
| 1278.HK | China New Town Development Co Ltd | 1.89 | 0.96 | 0.39 |
| 1560.HK | Star Properties Group (Cayman Islands) Ltd | 19.4 | 0.36 | 0.02 |
| 190.HK | HKC (Holdings) Ltd | 0.85 | 0.91 | 0.55 |
| 2288.HK | Rykadan Capital Ltd | 2.83 | 0.49 | 0.15 |
| 298.HK | Chuang's China Investments Ltd | 2.54 | 1.08 | 0.36 |
| 313.HK | Richly Field China Development Ltd | 7.68 | 1.51 | 0.22 |
| 865.HK | Jiande International Holdings Ltd | 0 | 1.41 | 1.41 |
| P36.SI | Pan Hong Holdings Group Ltd | 0.57 | 0.55 | 0.38 |
| Low | High | |
| Unlevered beta | 0.3 | 0.38 |
| Relevered beta | 0.31 | 0.39 |
| Adjusted relevered beta | 0.54 | 0.59 |
1195.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 1195.HK:
cost_of_equity (7.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.54) + 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.