1750.HK
REM Group (Holdings) Ltd
Price:  
0.04 
HKD
Volume:  
3,020,000.00
Hong Kong | Electrical Equipment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

1750.HK WACC - Weighted Average Cost of Capital

The WACC of REM Group (Holdings) Ltd (1750.HK) is 6.1%.

The Cost of Equity of REM Group (Holdings) Ltd (1750.HK) is 6.20%.
The Cost of Debt of REM Group (Holdings) Ltd (1750.HK) is 4.25%.

Range Selected
Cost of equity 5.50% - 6.90% 6.20%
Tax rate 6.30% - 10.30% 8.30%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.4% - 6.8% 6.1%
WACC

1750.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.43 0.44
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 6.90%
Tax rate 6.30% 10.30%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.00% 4.50%
After-tax WACC 5.4% 6.8%
Selected WACC 6.1%

1750.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 1750.HK:

cost_of_equity (6.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.43) + 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.