1657.HK
SG Group Holdings Ltd
Price:  
9.5 
HKD
Volume:  
2,000
Hong Kong | Textiles, Apparel & Luxury Goods

1657.HK WACC - Weighted Average Cost of Capital

The WACC of SG Group Holdings Ltd (1657.HK) is 6.7%.

The Cost of Equity of SG Group Holdings Ltd (1657.HK) is 6.7%.
The Cost of Debt of SG Group Holdings Ltd (1657.HK) is 6.3%.

RangeSelected
Cost of equity5.2% - 8.2%6.7%
Tax rate11.5% - 35.1%23.3%
Cost of debt5.6% - 7.0%6.3%
WACC5.2% - 8.1%6.7%
WACC

1657.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.390.62
Additional risk adjustments0.0%0.5%
Cost of equity5.2%8.2%
Tax rate11.5%35.1%
Debt/Equity ratio
0.020.02
Cost of debt5.6%7.0%
After-tax WACC5.2%8.1%
Selected WACC6.7%

1657.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 1657.HK:

cost_of_equity (6.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.