1329.HK WACC - Weighted Average Cost of Capital
The WACC of Beijing Capital Grand Ltd (1329.HK) is 11.5%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.7% | 8.9% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 9.4% - 22.9% | 16.15% |
| WACC | 7.3% - 15.6% | 11.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.71 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.7% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 2.34 | 2.34 |
| Cost of debt | 9.4% | 22.9% |
| After-tax WACC | 7.3% | 15.6% |
| Selected WACC | 11.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1329.HK | Beijing Capital Grand Ltd | 2.34 | 0.02 | 0.01 |
| 1232.HK | Golden Wheel Tiandi Holdings Company Ltd | 31.81 | 1.2 | 0.05 |
| 1321.HK | China New City Commercial Development Ltd | 3.4 | 0.22 | 0.06 |
| 1396.HK | Guangdong Hong Kong Greater Bay Area Holdings Ltd | 2.19 | 0.89 | 0.33 |
| 1538.HK | Zhong Ao Home Group Ltd | 0.18 | 0.31 | 0.27 |
| 3616.HK | Ever Reach Group (Holdings) Company Ltd | 2.53 | 0.27 | 0.09 |
| 600173.SS | Wolong Real Estate Group Co Ltd | 0.13 | 0.94 | 0.86 |
| 600533.SS | Nanjing Chixia Development Co Ltd | 4.31 | 1.56 | 0.36 |
| 600684.SS | Guangzhou Pearl River Industrial Development Co Ltd | 0.18 | 1.15 | 1.01 |
| 600807.SS | Jinan High-tech Development Co Ltd | 0.04 | 1.32 | 1.28 |
| Low | High | |
| Unlevered beta | 0.2 | 0.34 |
| Relevered beta | 0.57 | 0.96 |
| Adjusted relevered beta | 0.71 | 0.97 |
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 (8.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.71) + 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.