1560.HK
Star Properties Group (Cayman Islands) Ltd
Price:  
0.11 
HKD
Volume:  
316,000
Hong Kong | Real Estate Management & Development

1560.HK WACC - Weighted Average Cost of Capital

The WACC of Star Properties Group (Cayman Islands) Ltd (1560.HK) is 6.3%.

The Cost of Equity of Star Properties Group (Cayman Islands) Ltd (1560.HK) is 9.2%.
The Cost of Debt of Star Properties Group (Cayman Islands) Ltd (1560.HK) is 6.35%.

RangeSelected
Cost of equity6.0% - 12.4%9.2%
Tax rate1.8% - 3.1%2.45%
Cost of debt5.7% - 7.0%6.35%
WACC5.6% - 7.1%6.3%
WACC

1560.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.521.22
Additional risk adjustments0.0%0.5%
Cost of equity6.0%12.4%
Tax rate1.8%3.1%
Debt/Equity ratio
19.419.4
Cost of debt5.7%7.0%
After-tax WACC5.6%7.1%
Selected WACC6.3%

1560.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 1560.HK:

cost_of_equity (9.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.52) + 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.