1500.HK WACC - Weighted Average Cost of Capital
The WACC of IN Construction Holdings Ltd (1500.HK) is 5.2%.
| Range | Selected | |
| Cost of equity | 4.8% - 6.4% | 5.6% |
| Tax rate | 8.5% - 14.0% | 11.25% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 5.9% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.33 | 0.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 6.4% |
| Tax rate | 8.5% | 14.0% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 5.9% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1500.HK | IN Construction Holdings Ltd | 0.26 | 0.35 | 0.29 |
| 1557.HK | K H Group Holdings Ltd | 0.38 | 0.2 | 0.15 |
| 1633.HK | Sheung Yue Group Holdings Ltd | 3.34 | -0.11 | -0.03 |
| 1718.HK | Wan Kei Group Holdings Ltd | 2.89 | 0.04 | 0.01 |
| 1870.HK | Acme International Holdings Ltd | 0.46 | -0.81 | -0.58 |
| 784.HK | Ling Yui Holdings Ltd | 0.71 | 1.2 | 0.74 |
| 8217.HK | Luen Wong Group Holdings Ltd | 0.18 | -0.12 | -0.11 |
| 8305.HK | Tong Kee (Holding) Ltd | 0.02 | -0.17 | -0.17 |
| 8423.HK | Chi Ho Development Holdings Ltd | 2.88 | 0.33 | 0.09 |
| 8445.HK | Noble Engineering Group Holdings Ltd | 0.01 | 0.01 | 0.01 |
| Low | High | |
| Unlevered beta | 0 | 0.04 |
| Relevered beta | 0 | 0.06 |
| Adjusted relevered beta | 0.33 | 0.37 |
1500.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 1500.HK:
cost_of_equity (5.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + 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.