174.HK WACC - Weighted Average Cost of Capital

The WACC of Gemini Investments Holdings Ltd (174.HK) is 11.0%.

The Cost of Equity of Gemini Investments Holdings Ltd (174.HK) is 77.95%.

The Cost of Debt of Gemini Investments Holdings Ltd (174.HK) is 10.30%.

	Range	Selected
Cost of equity	41.50% - 114.40%	77.95%
Tax rate	14.20% - 17.70%	15.95%
Cost of debt	6.00% - 14.60%	10.30%
WACC	6.4% - 15.6%	11.0%

WACC

174.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	6.46	15.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	41.50%	114.40%

Tax rate	14.20%	17.70%
Debt/Equity ratio	27.76	27.76
Cost of debt	6.00%	14.60%

After-tax WACC	6.4%	15.6%


Selected WACC	11.0%

174.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 174.HK:

cost_of_equity (77.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (6.46) + 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.