1633.HK WACC - Weighted Average Cost of Capital

The WACC of Sheung Yue Group Holdings Ltd (1633.HK) is 7.3%.

The Cost of Equity of Sheung Yue Group Holdings Ltd (1633.HK) is 5.40%.

The Cost of Debt of Sheung Yue Group Holdings Ltd (1633.HK) is 10.10%.

	Range	Selected
Cost of equity	3.90% - 6.90%	5.40%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	5.60% - 14.60%	10.10%
WACC	4.3% - 10.2%	7.3%

WACC

1633.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.18	0.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	3.90%	6.90%

Tax rate	22.10%	22.30%
Debt/Equity ratio	2.98	2.98
Cost of debt	5.60%	14.60%

After-tax WACC	4.3%	10.2%


Selected WACC	7.3%

1633.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 1633.HK:

cost_of_equity (5.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.18) + 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.