1468.HK WACC - Weighted Average Cost of Capital
The WACC of Kingkey Financial International Holdings Ltd (1468.HK) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.2% | 6.3% |
| Tax rate | 1.5% - 8.1% | 4.8% |
| Cost of debt | 5.4% - 7.0% | 6.2% |
| WACC | 5.4% - 7.0% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.33 | 0.41 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.4% | 7.2% |
| Tax rate | 1.5% | 8.1% |
| Debt/Equity ratio | 0.47 | 0.47 |
| Cost of debt | 5.4% | 7.0% |
| After-tax WACC | 5.4% | 7.0% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1468.HK | Kingkey Financial International Holdings Ltd | 0.47 | 2.8 | 1.93 |
| 186.HK | Nimble Holdings Co Ltd | 0.53 | 0.23 | 0.15 |
| 222.HK | Min Xin Holdings Ltd | 0.72 | 0.63 | 0.37 |
| 33.HK | Amber Hill Financial Holdings Ltd | 0.03 | -0.01 | -0.01 |
| 335.HK | Upbest Group Ltd | 0.06 | 0.67 | 0.63 |
| 620.HK | DTXS Silk Road Investment Holdings Co Ltd | 8.18 | -0.08 | -0.01 |
| 693.HK | Tan Chong International Ltd | 4.08 | 0.07 | 0.01 |
| 8026.HK | China Brilliant Global Ltd | 0.24 | -0.1 | -0.08 |
| 860.HK | Apollo Future Mobility Group Ltd | 0.18 | 0.28 | 0.24 |
| 886.HK | Silver Base Group Holdings Ltd | 13.73 | 0.41 | 0.03 |
| 970.HK | Sparkle Roll Group Ltd | 4.9 | -0.26 | -0.04 |
| Low | High | |
| Unlevered beta | 0.01 | 0.15 |
| Relevered beta | 0 | 0.12 |
| Adjusted relevered beta | 0.33 | 0.41 |
1468.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 1468.HK:
cost_of_equity (6.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.