1813.HK
KWG Group Holdings Ltd
Price:  
0.31 
HKD
Volume:  
751,681
China | Real Estate Management & Development

1813.HK WACC - Weighted Average Cost of Capital

The WACC of KWG Group Holdings Ltd (1813.HK) is 5.4%.

The Cost of Equity of KWG Group Holdings Ltd (1813.HK) is 30.3%.
The Cost of Debt of KWG Group Holdings Ltd (1813.HK) is 5.95%.

RangeSelected
Cost of equity18.6% - 42.0%30.3%
Tax rate7.9% - 18.3%13.1%
Cost of debt4.9% - 7.0%5.95%
WACC4.7% - 6.2%5.4%
WACC

1813.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta2.635.47
Additional risk adjustments0.0%0.5%
Cost of equity18.6%42.0%
Tax rate7.9%18.3%
Debt/Equity ratio
75.4775.47
Cost of debt4.9%7.0%
After-tax WACC4.7%6.2%
Selected WACC5.4%

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 (30.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (2.63) + 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.