1582.HK WACC - Weighted Average Cost of Capital

The WACC of CR Construction Group Holdings Ltd (1582.HK) is 67.5%.

The Cost of Equity of CR Construction Group Holdings Ltd (1582.HK) is 8.25%.

The Cost of Debt of CR Construction Group Holdings Ltd (1582.HK) is 134.95%.

	Range	Selected
Cost of equity	6.60% - 9.90%	8.25%
Tax rate	13.60% - 17.10%	15.35%
Cost of debt	5.10% - 264.80%	134.95%
WACC	5.3% - 129.7%	67.5%

WACC

1582.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.62	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	9.90%

Tax rate	13.60%	17.10%
Debt/Equity ratio	1.33	1.33
Cost of debt	5.10%	264.80%

After-tax WACC	5.3%	129.7%


Selected WACC	67.5%

1582.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 1582.HK:

cost_of_equity (8.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.62) + 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.