162.HK WACC - Weighted Average Cost of Capital

The WACC of Century Ginwa Retail Holdings Ltd (162.HK) is 6.9%.

The Cost of Equity of Century Ginwa Retail Holdings Ltd (162.HK) is 16.05%.

The Cost of Debt of Century Ginwa Retail Holdings Ltd (162.HK) is 7.00%.

	Range	Selected
Cost of equity	10.30% - 21.80%	16.05%
Tax rate	1.50% - 3.70%	2.60%
Cost of debt	7.00% - 7.00%	7.00%
WACC	6.9% - 6.9%	6.9%

WACC

162.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.24	2.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	21.80%

Tax rate	1.50%	3.70%
Debt/Equity ratio	100.46	100.46
Cost of debt	7.00%	7.00%

After-tax WACC	6.9%	6.9%


Selected WACC	6.9%

162.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 162.HK:

cost_of_equity (16.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.24) + 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.