1571.HK WACC - Weighted Average Cost of Capital
The WACC of Xin Point Holdings Ltd (1571.HK) is 11.0%.
| Range | Selected | |
| Cost of equity | 9.6% - 13.0% | 11.3% |
| Tax rate | 16.9% - 17.9% | 17.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 9.4% - 12.7% | 11.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.12 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 13.0% |
| Tax rate | 16.9% | 17.9% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 9.4% | 12.7% |
| Selected WACC | 11.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1571.HK | Xin Point Holdings Ltd | 0.04 | 0.6 | 0.59 |
| 002031.SZ | Greatoo Intelligent Equipment Inc | 0.07 | 1.68 | 1.59 |
| 002472.SZ | Zhejiang Shuanghuan Driveline Co Ltd | 0.13 | 1.54 | 1.39 |
| 002488.SZ | Zhejiang Jingu Co Ltd | 0.21 | 0.2 | 0.17 |
| 002510.SZ | Tianjin Motor Dies Co Ltd | 0.19 | 1.49 | 1.29 |
| 002590.SZ | Zhejiang VIE Science & Technology Co Ltd | 0.13 | 1.62 | 1.47 |
| 002664.SZ | Changying Xinzhi Technology Co Ltd | 0.63 | 1.38 | 0.91 |
| 300432.SZ | Mianyang Fulin Precision Co Ltd | 0.13 | 1.8 | 1.62 |
| 600114.SS | NBTM New Materials Group Co Ltd | 0.26 | 1.16 | 0.95 |
| 600523.SS | Guizhou Guihang Automotive Components Co Ltd | 0.03 | 1.48 | 1.45 |
| Low | High | |
| Unlevered beta | 1.15 | 1.42 |
| Relevered beta | 1.18 | 1.46 |
| Adjusted relevered beta | 1.12 | 1.31 |
1571.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 1571.HK:
cost_of_equity (11.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.12) + 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.