1525.HK
Shanghai Gench Education Group Ltd
Price:  
2.53 
HKD
Volume:  
68,000.00
China | Diversified Consumer Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

1525.HK WACC - Weighted Average Cost of Capital

The WACC of Shanghai Gench Education Group Ltd (1525.HK) is 7.0%.

The Cost of Equity of Shanghai Gench Education Group Ltd (1525.HK) is 10.20%.
The Cost of Debt of Shanghai Gench Education Group Ltd (1525.HK) is 4.25%.

Range Selected
Cost of equity 7.30% - 13.10% 10.20%
Tax rate 25.20% - 25.70% 25.45%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.4% - 8.6% 7.0%
WACC

1525.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.75 1.32
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 13.10%
Tax rate 25.20% 25.70%
Debt/Equity ratio 0.83 0.83
Cost of debt 4.00% 4.50%
After-tax WACC 5.4% 8.6%
Selected WACC 7.0%

1525.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 1525.HK:

cost_of_equity (10.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.75) + 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.