1813.HK WACC - Weighted Average Cost of Capital
The WACC of KWG Group Holdings Ltd (1813.HK) is 5.4%.
| Range | Selected | |
| Cost of equity | 18.6% - 42.0% | 30.3% |
| Tax rate | 7.9% - 18.3% | 13.1% |
| Cost of debt | 4.9% - 7.0% | 5.95% |
| WACC | 4.7% - 6.2% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 2.63 | 5.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 18.6% | 42.0% |
| Tax rate | 7.9% | 18.3% |
| Debt/Equity ratio | 75.47 | 75.47 |
| Cost of debt | 4.9% | 7.0% |
| After-tax WACC | 4.7% | 6.2% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1813.HK | KWG Group Holdings Ltd | 75.47 | 3.63 | 0.05 |
| 000031.SZ | Grandjoy Holdings Group Co Ltd | 7.25 | 1.48 | 0.19 |
| 000537.SZ | Tianjin Guangyu Development Co Ltd | 3.37 | 1.01 | 0.25 |
| 000540.SZ | Zhongtian Financial Group Co Ltd | 15.12 | 1.56 | 0.1 |
| 000732.SZ | Tahoe Group Co Ltd | 106.9 | 1.75 | 0.02 |
| 002244.SZ | Hangzhou Binjiang Real Estate Group Co Ltd | 2.18 | 1.17 | 0.39 |
| 1107.HK | Modern Land (China) Co Ltd | 413.67 | 0.21 | 0 |
| 1862.HK | Jingrui Holdings Ltd | 1135.37 | 0.27 | 0 |
| 600325.SS | Huafa Industrial Co Ltd Zhuhai | 11.56 | 1.34 | 0.12 |
| 600466.SS | Sichuan Languang Development Co Ltd | 52.59 | 1.09 | 0.02 |
| 600823.SS | Shanghai Shimao Co Ltd | 17.49 | 1.13 | 0.07 |
| Low | High | |
| Unlevered beta | 0.05 | 0.1 |
| Relevered beta | 3.43 | 7.67 |
| Adjusted relevered beta | 2.63 | 5.47 |
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.