1757.HK WACC - Weighted Average Cost of Capital
The WACC of Affluent Foundation Holdings Ltd (1757.HK) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.4% | 6.4% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.3% - 7.3% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.42 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.4% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.3% | 7.3% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1757.HK | Affluent Foundation Holdings Ltd | 0.03 | 0.18 | 0.18 |
| 1667.HK | Milestone Builder Holdings Ltd | 0.99 | 0.15 | 0.08 |
| 1718.HK | Wan Kei Group Holdings Ltd | 3.28 | 0.08 | 0.02 |
| 1894.HK | Hang Yick Holdings Co Ltd | 0.02 | 1.22 | 1.2 |
| 2113.HK | Century Group International Holdings Ltd | 0.18 | 0.18 | 0.16 |
| 2193.HK | Man King Holdings Ltd | 0.12 | 0.09 | 0.08 |
| 2863.HK | Golden Faith Group Holdings Ltd | 0.01 | 0.36 | 0.35 |
| 8262.HK | Super Strong Holdings Ltd | 0.03 | -0.45 | -0.44 |
| 9929.HK | Sem Holdings Ltd | 0.07 | 0.63 | 0.6 |
| 9938.HK | Wah Wo Holdings Group Ltd | 0.11 | 0.65 | 0.6 |
| Low | High | |
| Unlevered beta | 0.13 | 0.25 |
| Relevered beta | 0.13 | 0.25 |
| Adjusted relevered beta | 0.42 | 0.5 |
1757.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 1757.HK:
cost_of_equity (6.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.