1329.HK WACC - Weighted Average Cost of Capital

The WACC of Beijing Capital Grand Ltd (1329.HK) is 11.4%.

The Cost of Equity of Beijing Capital Grand Ltd (1329.HK) is 8.70%.

The Cost of Debt of Beijing Capital Grand Ltd (1329.HK) is 16.15%.

	Range	Selected
Cost of equity	7.20% - 10.20%	8.70%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	9.40% - 22.90%	16.15%
WACC	7.3% - 15.5%	11.4%

WACC

1329.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.73	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.20%	10.20%

Tax rate	22.10%	22.30%
Debt/Equity ratio	2.32	2.32
Cost of debt	9.40%	22.90%

After-tax WACC	7.3%	15.5%


Selected WACC	11.4%

1329.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 1329.HK:

cost_of_equity (8.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.73) + 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.