2156.HK
C&D Property Management Group Co Ltd
Price:  
2.81 
HKD
Volume:  
1,441,000
China | Real Estate Management & Development

2156.HK WACC - Weighted Average Cost of Capital

The WACC of C&D Property Management Group Co Ltd (2156.HK) is 9.0%.

The Cost of Equity of C&D Property Management Group Co Ltd (2156.HK) is 9.05%.
The Cost of Debt of C&D Property Management Group Co Ltd (2156.HK) is 4.75%.

RangeSelected
Cost of equity7.1% - 11.0%9.05%
Tax rate22.4% - 23.5%22.95%
Cost of debt4.0% - 5.5%4.75%
WACC7.1% - 10.9%9.0%
WACC

2156.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.711.02
Additional risk adjustments0.0%0.5%
Cost of equity7.1%11.0%
Tax rate22.4%23.5%
Debt/Equity ratio
0.010.01
Cost of debt4.0%5.5%
After-tax WACC7.1%10.9%
Selected WACC9.0%

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 (9.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.71) + 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.