1660.HK WACC - Weighted Average Cost of Capital
The WACC of Zhaobangji Properties Holdings Ltd (1660.HK) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.8% | 6.65% |
| Tax rate | 16.4% - 20.9% | 18.65% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.4% - 7.8% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.35 | 0.5 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.5% | 7.8% |
| Tax rate | 16.4% | 20.9% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.4% | 7.8% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1660.HK | Zhaobangji Properties Holdings Ltd | 0.04 | 0.81 | 0.79 |
| 1341.HK | Hao Tian International Construction Investment Group Ltd | 0.14 | 0.58 | 0.52 |
| 1496.HK | AP Rentals Holdings Ltd | 0.35 | 0.37 | 0.29 |
| 2322.HK | Hong Kong ChaoShang Group Ltd | 0.01 | 0.02 | 0.02 |
| 254.HK | National United Resources Holdings Ltd | 0.86 | 0.88 | 0.51 |
| 399.HK | Innovative Pharmaceutical Biotech Ltd | 3.06 | -0.15 | -0.04 |
| 8162.HK | Loco Hong Kong Holdings Ltd | 0.06 | -0.19 | -0.18 |
| 8425.HK | Hing Ming Holdings Ltd | 0.81 | 0.35 | 0.21 |
| 8612.HK | World Super Holdings Ltd | 0.56 | 0.06 | 0.04 |
| 997.HK | Chinlink International Holdings Ltd | 71.11 | 1.51 | 0.03 |
| Low | High | |
| Unlevered beta | 0.04 | 0.24 |
| Relevered beta | 0.03 | 0.25 |
| Adjusted relevered beta | 0.35 | 0.5 |
1660.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 1660.HK:
cost_of_equity (6.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.35) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.