1628.HK
Yuzhou Group Holdings Co Ltd
Price:  
0.04 
HKD
Volume:  
2,067,774.00
China | Real Estate Management & Development
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1628.HK WACC - Weighted Average Cost of Capital

The WACC of Yuzhou Group Holdings Co Ltd (1628.HK) is 4.9%.

The Cost of Equity of Yuzhou Group Holdings Co Ltd (1628.HK) is 35.45%.
The Cost of Debt of Yuzhou Group Holdings Co Ltd (1628.HK) is 5.50%.

Range Selected
Cost of equity 17.10% - 53.80% 35.45%
Tax rate 0.80% - 22.60% 11.70%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.1% - 5.8% 4.9%
WACC

1628.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 2.38 7.16
Additional risk adjustments 0.0% 0.5%
Cost of equity 17.10% 53.80%
Tax rate 0.80% 22.60%
Debt/Equity ratio 140.71 140.71
Cost of debt 4.00% 7.00%
After-tax WACC 4.1% 5.8%
Selected WACC 4.9%

1628.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 1628.HK:

cost_of_equity (35.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.38) + 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.