230.HK WACC - Weighted Average Cost of Capital
The WACC of Minmetals Land Ltd (230.HK) is 4.0%.
| Range | Selected | |
| Cost of equity | 5.8% - 12.4% | 9.1% |
| Tax rate | 37.6% - 42.7% | 40.15% |
| Cost of debt | 5.1% - 7.0% | 6.05% |
| WACC | 3.4% - 4.5% | 4.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.48 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 12.4% |
| Tax rate | 37.6% | 42.7% |
| Debt/Equity ratio | 14.56 | 14.56 |
| Cost of debt | 5.1% | 7.0% |
| After-tax WACC | 3.4% | 4.5% |
| Selected WACC | 4.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 230.HK | Minmetals Land Ltd | 14.56 | 2.7 | 0.28 |
| 115.HK | Grand Field Group Holdings Ltd | 14.86 | 0.22 | 0.02 |
| 131.HK | Cheuk Nang Holdings Ltd | 1.61 | 0.05 | 0.03 |
| 173.HK | K. Wah International Holdings Ltd | 2.29 | 0.68 | 0.29 |
| 185.HK | Zensun Enterprises Ltd | 97.36 | 0.16 | 0 |
| 28.HK | Tian An China Investments Co Ltd | 0.92 | 0.59 | 0.38 |
| 367.HK | Chuang's Consortium International Ltd | 6.81 | 0.63 | 0.13 |
| 456.HK | New City Development Group Ltd | 11.61 | 1.24 | 0.16 |
| 655.HK | Hongkong Chinese Ltd | 0.9 | 0.45 | 0.29 |
| 845.HK | Glorious Property Holdings Ltd | 318.64 | 1.36 | 0.01 |
| 996.HK | Carnival Group International Holdings Ltd | 124.79 | -0.35 | 0 |
| Low | High | |
| Unlevered beta | 0.03 | 0.16 |
| Relevered beta | 0.22 | 1.33 |
| Adjusted relevered beta | 0.48 | 1.22 |
230.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 230.HK:
cost_of_equity (9.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.48) + 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.