132.HK WACC - Weighted Average Cost of Capital
The WACC of China Investments Holdings Ltd (132.HK) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.2% - 10.2% | 8.2% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.0% - 14.6% | 9.3% |
| WACC | 3.4% - 11.3% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.56 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 10.2% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 10.55 | 10.55 |
| Cost of debt | 4.0% | 14.6% |
| After-tax WACC | 3.4% | 11.3% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 132.HK | China Investments Holdings Ltd | 10.55 | 1.02 | 0.11 |
| 1215.HK | Kai Yuan Holdings Ltd | 8.41 | 0.62 | 0.08 |
| 1355.HK | Legend Strategy International Holdings Group Company Ltd | 1.84 | -0.28 | -0.12 |
| 201.HK | Magnificent Hotel Investments Ltd | 1.13 | 0.67 | 0.36 |
| 219.HK | Shun Ho Property Investments Ltd | 3.11 | 0.18 | 0.05 |
| 22.HK | Mexan Ltd | 0.5 | 1.8 | 1.3 |
| 292.HK | Asia Standard Hotel Group Ltd | 37.96 | 0.34 | 0.01 |
| 355.HK | Century City International Holdings Ltd | 172.76 | 0.77 | 0.01 |
| 559.HK | DeTai New Energy Group Ltd | 0.39 | 0.89 | 0.68 |
| 8237.HK | Link Holdings Ltd | 13.57 | 0.18 | 0.02 |
| Low | High | |
| Unlevered beta | 0.04 | 0.09 |
| Relevered beta | 0.34 | 0.87 |
| Adjusted relevered beta | 0.56 | 0.91 |
132.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 132.HK:
cost_of_equity (8.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.