2156.HK WACC - Weighted Average Cost of Capital

The WACC of C&D Property Management Group Co Ltd (2156.HK) is 9.1%.

The Cost of Equity of C&D Property Management Group Co Ltd (2156.HK) is 9.20%.

The Cost of Debt of C&D Property Management Group Co Ltd (2156.HK) is 5.00%.

	Range	Selected
Cost of equity	7.50% - 10.90%	9.20%
Tax rate	22.40% - 23.50%	22.95%
Cost of debt	4.00% - 6.00%	5.00%
WACC	7.5% - 10.8%	9.1%

WACC

2156.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.78	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.90%

Tax rate	22.40%	23.50%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	6.00%

After-tax WACC	7.5%	10.8%


Selected WACC	9.1%

2156.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 2156.HK:

cost_of_equity (9.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.78) + 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.