1233.HK WACC - Weighted Average Cost of Capital
The WACC of Times China Holdings Ltd (1233.HK) is 5.6%.
| Range | Selected | |
| Cost of equity | 23.5% - 46.3% | 34.9% |
| Tax rate | 11.4% - 23.7% | 17.55% |
| Cost of debt | 6.2% - 7.0% | 6.6% |
| WACC | 5.6% - 5.6% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 3.45 | 6.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 23.5% | 46.3% |
| Tax rate | 11.4% | 23.7% |
| Debt/Equity ratio | 141.75 | 141.75 |
| Cost of debt | 6.2% | 7.0% |
| After-tax WACC | 5.6% | 5.6% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1233.HK | Times China Holdings Ltd | 141.75 | 2.68 | 0.02 |
| 000656.SZ | Jinke Property Group Co Ltd | 8.79 | 0.71 | 0.08 |
| 000671.SZ | Yango Group Co Ltd | 64.74 | 1.84 | 0.03 |
| 000732.SZ | Tahoe Group Co Ltd | 106.9 | 1.75 | 0.02 |
| 000961.SZ | Jiangsu Zhongnan Construction Group Co Ltd | 37.51 | 1.38 | 0.04 |
| 3380.HK | Logan Group Co Ltd | 23.84 | 1.31 | 0.06 |
| 3990.HK | Midea Real Estate Holding Ltd | 0.17 | 0.83 | 0.72 |
| 600376.SS | Beijing Capital Development Co Ltd | 21.06 | 1.92 | 0.1 |
| 600383.SS | Gemdale Corp | 6.31 | 1.4 | 0.21 |
| 600466.SS | Sichuan Languang Development Co Ltd | 52.59 | 1.09 | 0.02 |
| 832.HK | Central China Real Estate Ltd | 99.87 | 1.99 | 0.02 |
| Low | High | |
| Unlevered beta | 0.03 | 0.06 |
| Relevered beta | 4.66 | 8.58 |
| Adjusted relevered beta | 3.45 | 6.08 |
1233.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 1233.HK:
cost_of_equity (34.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (3.45) + 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.