1355.HK WACC - Weighted Average Cost of Capital
The WACC of Legend Strategy International Holdings Group Company Ltd (1355.HK) is 5.0%.
| Range | Selected | |
| Cost of equity | 5.0% - 8.3% | 6.65% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.3% - 5.6% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.36 | 0.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 8.3% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 1.51 | 1.51 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.3% | 5.6% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1355.HK | Legend Strategy International Holdings Group Company Ltd | 1.51 | -0.24 | -0.11 |
| 1189.HK | Greater Bay Area Dynamic Growth Holding Ltd | 0.59 | 1.36 | 0.93 |
| 181.HK | Fujian Holdings Ltd | 0.01 | 0.75 | 0.74 |
| 22.HK | Mexan Ltd | 0.34 | 1.95 | 1.54 |
| 292.HK | Asia Standard Hotel Group Ltd | 37.96 | 0.34 | 0.01 |
| 355.HK | Century City International Holdings Ltd | 80.91 | 0.78 | 0.01 |
| 37.HK | Far East Hotels and Entertainment Ltd | 0.06 | 0.5 | 0.48 |
| 617.HK | Paliburg Holdings Ltd | 56.24 | 0.96 | 0.02 |
| 78.HK | Regal Hotels International Holdings Ltd | 26.71 | 0.62 | 0.03 |
| 8237.HK | Link Holdings Ltd | 16.94 | 0.21 | 0.01 |
| Low | High | |
| Unlevered beta | 0.02 | 0.21 |
| Relevered beta | 0.04 | 0.45 |
| Adjusted relevered beta | 0.36 | 0.63 |
1355.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 1355.HK:
cost_of_equity (6.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.