2292.HK WACC - Weighted Average Cost of Capital
The WACC of Thing On Enterprise Ltd (2292.HK) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.6% | 6.45% |
| Tax rate | 4.7% - 6.6% | 5.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 6.1% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.4 | 0.54 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.6% |
| Tax rate | 4.7% | 6.6% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 6.1% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2292.HK | Thing On Enterprise Ltd | 1.13 | -0.16 | -0.08 |
| 277.HK | Tern Properties Co Ltd | 0.09 | 0.15 | 0.14 |
| 287.HK | Winfair Investment Co Ltd | 0.1 | -0.01 | -0.01 |
| 3699.HK | Everbright Grand China Assets Ltd | 0 | 0.73 | 0.73 |
| 499.HK | Qingdao Holdings International Ltd | 3.52 | 0.25 | 0.06 |
| 565.HK | Art Group Holdings Ltd | 0.21 | 1.05 | 0.88 |
| 583.HK | Great Wall Pan Asia Holdings Ltd | 15.62 | 0.05 | 0 |
| 613.HK | Planetree International Development Ltd | 0.12 | 0.41 | 0.37 |
| 616.HK | Eminence Enterprise Ltd | 29.47 | 1.2 | 0.04 |
| 63.HK | China Asia Valley Group Ltd | 1.26 | 0.42 | 0.19 |
| 864.HK | Wing Lee Property Investments Ltd | 2.01 | 0.15 | 0.05 |
| Low | High | |
| Unlevered beta | 0.05 | 0.14 |
| Relevered beta | 0.1 | 0.31 |
| Adjusted relevered beta | 0.4 | 0.54 |
2292.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 2292.HK:
cost_of_equity (6.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.4) + 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.