199.HK WACC - Weighted Average Cost of Capital
The WACC of ITC Properties Group Ltd (199.HK) is 5.6%.
| Range | Selected | |
| Cost of equity | 4.4% - 9.1% | 6.75% |
| Tax rate | 1.0% - 2.6% | 1.8% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.0% - 7.1% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.25 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.4% | 9.1% |
| Tax rate | 1.0% | 2.6% |
| Debt/Equity ratio | 7.34 | 7.34 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.0% | 7.1% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 199.HK | ITC Properties Group Ltd | 7.34 | -0.32 | -0.04 |
| 115.HK | Grand Field Group Holdings Ltd | 14.86 | 0.03 | 0 |
| 1560.HK | Star Properties Group (Cayman Islands) Ltd | 23.04 | 0.28 | 0.01 |
| 169.HK | Wanda Hotel Development Co Ltd | 0.16 | 0.32 | 0.27 |
| 2892.HK | Million Cities Holdings Ltd | 0 | -0.32 | -0.32 |
| 298.HK | Chuang's China Investments Ltd | 2.4 | 1.07 | 0.32 |
| 51.HK | Harbour Centre Development Ltd | 0.13 | 0.39 | 0.35 |
| 655.HK | Hongkong Chinese Ltd | 1.09 | 0.35 | 0.17 |
| 938.HK | Man Sang International Ltd | 4.42 | -1.06 | -0.2 |
| RISE.JK | Jaya Sukses Makmur Sentosa Tbk PT | 0.05 | -0.08 | -0.08 |
| Low | High | |
| Unlevered beta | -0.01 | 0.07 |
| Relevered beta | -0.12 | 0.61 |
| Adjusted relevered beta | 0.25 | 0.74 |
199.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 199.HK:
cost_of_equity (6.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.25) + 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.