160.HK
Hon Kwok Land Investment Co Ltd
Price:  
1.07 
HKD
Volume:  
36,000.00
Hong Kong | Real Estate Management & Development
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160.HK WACC - Weighted Average Cost of Capital

The WACC of Hon Kwok Land Investment Co Ltd (160.HK) is 7.7%.

The Cost of Equity of Hon Kwok Land Investment Co Ltd (160.HK) is 9.75%.
The Cost of Debt of Hon Kwok Land Investment Co Ltd (160.HK) is 9.50%.

Range Selected
Cost of equity 6.70% - 12.80% 9.75%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 4.40% - 14.60% 9.50%
WACC 3.8% - 11.5% 7.7%
WACC

160.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.65 1.29
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 12.80%
Tax rate 22.10% 22.30%
Debt/Equity ratio 8.5 8.5
Cost of debt 4.40% 14.60%
After-tax WACC 3.8% 11.5%
Selected WACC 7.7%

160.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 160.HK:

cost_of_equity (9.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.65) + 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.