1560.HK WACC - Weighted Average Cost of Capital
The WACC of Star Properties Group (Cayman Islands) Ltd (1560.HK) is 6.3%.
| Range | Selected | |
| Cost of equity | 6.0% - 12.4% | 9.2% |
| Tax rate | 1.8% - 3.1% | 2.45% |
| Cost of debt | 5.7% - 7.0% | 6.35% |
| WACC | 5.6% - 7.1% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.52 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 12.4% |
| Tax rate | 1.8% | 3.1% |
| Debt/Equity ratio | 19.4 | 19.4 |
| Cost of debt | 5.7% | 7.0% |
| After-tax WACC | 5.6% | 7.1% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1560.HK | Star Properties Group (Cayman Islands) Ltd | 19.4 | 0.38 | 0.02 |
| 1125.HK | Lai Fung Holdings Ltd | 30.38 | 0.33 | 0.01 |
| 1195.HK | Kingwell Group Ltd | 0 | 1.32 | 1.32 |
| 1218.HK | Easyknit International Holdings Ltd | 29.19 | -0.06 | 0 |
| 2288.HK | Rykadan Capital Ltd | 2.89 | 0.53 | 0.14 |
| 2892.HK | Million Cities Holdings Ltd | 0 | -0.22 | -0.22 |
| 313.HK | Richly Field China Development Ltd | 7.27 | 1.53 | 0.19 |
| 432.HK | Pacific Century Premium Developments Ltd | 23.55 | 0.4 | 0.02 |
| 938.HK | Man Sang International Ltd | 7.63 | -1.09 | -0.13 |
| P36.SI | Pan Hong Holdings Group Ltd | 0.52 | 0.51 | 0.34 |
| Low | High | |
| Unlevered beta | 0.01 | 0.07 |
| Relevered beta | 0.28 | 1.33 |
| Adjusted relevered beta | 0.52 | 1.22 |
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.