1813.HK WACC - Weighted Average Cost of Capital

The WACC of KWG Group Holdings Ltd (1813.HK) is 6.1%.

The Cost of Equity of KWG Group Holdings Ltd (1813.HK) is 29.05%.

The Cost of Debt of KWG Group Holdings Ltd (1813.HK) is 6.65%.

	Range	Selected
Cost of equity	17.60% - 40.50%	29.05%
Tax rate	7.90% - 18.30%	13.10%
Cost of debt	6.30% - 7.00%	6.65%
WACC	6.0% - 6.2%	6.1%

WACC

1813.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	2.46	5.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.60%	40.50%

Tax rate	7.90%	18.30%
Debt/Equity ratio	70.04	70.04
Cost of debt	6.30%	7.00%

After-tax WACC	6.0%	6.2%


Selected WACC	6.1%

1813.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 1813.HK:

cost_of_equity (29.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.46) + 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.