1215.HK WACC - Weighted Average Cost of Capital
The WACC of Kai Yuan Holdings Ltd (1215.HK) is 5.9%.
| Range | Selected | |
| Cost of equity | 15.0% - 29.6% | 22.3% |
| Tax rate | 21.2% - 25.6% | 23.4% |
| Cost of debt | 4.0% - 6.5% | 5.25% |
| WACC | 4.4% - 7.5% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 2.03 | 3.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.0% | 29.6% |
| Tax rate | 21.2% | 25.6% |
| Debt/Equity ratio | 8.41 | 8.41 |
| Cost of debt | 4.0% | 6.5% |
| After-tax WACC | 4.4% | 7.5% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1215.HK | Kai Yuan Holdings Ltd | 8.41 | 0.62 | 0.08 |
| 1189.HK | Greater Bay Area Dynamic Growth Holding Ltd | 0.59 | 1.36 | 0.94 |
| 132.HK | China Investments Holdings Ltd | 10.55 | 1.02 | 0.11 |
| 181.HK | Fujian Holdings Ltd | 0.01 | 0.69 | 0.68 |
| 219.HK | Shun Ho Property Investments Ltd | 3.11 | 0.18 | 0.05 |
| 22.HK | Mexan Ltd | 0.5 | 1.8 | 1.31 |
| 253.HK | Shun Ho Holdings Ltd | 6.29 | 0.29 | 0.05 |
| 523710.BO | Sayaji Hotels Ltd | 0.11 | 0.54 | 0.5 |
| 559.HK | DeTai New Energy Group Ltd | 0.39 | 0.89 | 0.69 |
| LANDMRK.KL | Landmarks Bhd | 0.01 | 0.93 | 0.93 |
| Low | High | |
| Unlevered beta | 0.35 | 0.68 |
| Relevered beta | 2.54 | 5.01 |
| Adjusted relevered beta | 2.03 | 3.69 |
1215.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 1215.HK:
cost_of_equity (22.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.03) + 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.