1587.HK WACC - Weighted Average Cost of Capital
The WACC of Shineroad International Holdings Ltd (1587.HK) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.2% - 10.2% | 8.2% |
| Tax rate | 28.3% - 29.1% | 28.7% |
| Cost of debt | 4.0% - 6.3% | 5.15% |
| WACC | 5.5% - 9.1% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.55 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 10.2% |
| Tax rate | 28.3% | 29.1% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.0% | 6.3% |
| After-tax WACC | 5.5% | 9.1% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1587.HK | Shineroad International Holdings Ltd | 0.25 | 0.17 | 0.15 |
| 000576.SZ | Guangdong Ganhua Science & Industry Co Ltd | 0.03 | 1.71 | 1.68 |
| 1210.HK | Christine International Holdings Ltd | 3.93 | 0.25 | 0.06 |
| 1936.HK | Ritamix Global Ltd | 0.01 | -0.02 | -0.02 |
| 4061.SR | Anaam International Holding Group Company SJSC | 0.33 | 1.22 | 0.99 |
| 542025.BO | Sun Retail Ltd | 0.27 | 0.74 | 0.62 |
| 603777.SS | Shanghai Laiyifen Co Ltd | 0.08 | 1.02 | 0.96 |
| 7413.T | Sokensha Co Ltd | 0.48 | 0.31 | 0.23 |
| BEEF.JK | Estika Tata Tiara Tbk PT | 0.19 | 0.36 | 0.31 |
| KMDS.JK | Kurniamitra Duta Sentosa Tbk PT | 0 | 0.92 | 0.92 |
| Low | High | |
| Unlevered beta | 0.28 | 0.74 |
| Relevered beta | 0.33 | 0.87 |
| Adjusted relevered beta | 0.55 | 0.91 |
1587.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 1587.HK:
cost_of_equity (8.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.55) + 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.