1282.HK WACC - Weighted Average Cost of Capital

The WACC of Glory Sun Financial Group Ltd (1282.HK) is 10.3%.

The Cost of Equity of Glory Sun Financial Group Ltd (1282.HK) is 10.10%.

The Cost of Debt of Glory Sun Financial Group Ltd (1282.HK) is 13.20%.

	Range	Selected
Cost of equity	6.50% - 13.70%	10.10%
Tax rate	18.50% - 22.20%	20.35%
Cost of debt	6.50% - 19.90%	13.20%
WACC	5.6% - 15.1%	10.3%

WACC

1282.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.61	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	13.70%

Tax rate	18.50%	22.20%
Debt/Equity ratio	4.14	4.14
Cost of debt	6.50%	19.90%

After-tax WACC	5.6%	15.1%


Selected WACC	10.3%

1282.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 1282.HK:

cost_of_equity (10.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.61) + 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.