1224.HK WACC - Weighted Average Cost of Capital

The WACC of C C Land Holdings Ltd (1224.HK) is 10.4%.

The Cost of Equity of C C Land Holdings Ltd (1224.HK) is 6.20%.

The Cost of Debt of C C Land Holdings Ltd (1224.HK) is 13.75%.

	Range	Selected
Cost of equity	4.90% - 7.50%	6.20%
Tax rate	3.00% - 6.50%	4.75%
Cost of debt	4.60% - 22.90%	13.75%
WACC	4.6% - 16.2%	10.4%

WACC

1224.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.34	0.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	7.50%

Tax rate	3.00%	6.50%
Debt/Equity ratio	1.68	1.68
Cost of debt	4.60%	22.90%

After-tax WACC	4.6%	16.2%


Selected WACC	10.4%

1224.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 1224.HK:

cost_of_equity (6.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.