2324.HK WACC - Weighted Average Cost of Capital
The WACC of Capital VC Ltd (2324.HK) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.3% - 6.9% | 6.1% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.3% - 6.4% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.4 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 6.9% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.56 | 0.56 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.3% | 6.4% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2324.HK | Capital VC Ltd | 0.56 | 5.5 | 3.83 |
| 1140.HK | Wealthking Investments Ltd | 1.68 | 0.3 | 0.13 |
| 1160.HK | Youth Champ Financial Group Holdings Ltd | 0.08 | 0.09 | 0.09 |
| 1226.HK | China Investment and Finance Group Ltd | 0.02 | 0.92 | 0.91 |
| 428.HK | Cocoon Holdings Ltd | 0.76 | -0.01 | -0.01 |
| 8088.HK | AID Life Science Holdings Ltd | 5.05 | 0.25 | 0.05 |
| 8340.HK | Vinco Financial Group Ltd | 1.47 | 0.72 | 0.34 |
| 8439.HK | Somerley Capital Holdings Ltd | 0.06 | 0.11 | 0.1 |
| 851.HK | Sheng Yuan Holdings Ltd | 0.02 | -0.03 | -0.03 |
| 901.HK | Goldstone Investment Group Ltd | 3.43 | -0.25 | -0.07 |
| 905.HK | Global Mastermind Capital Ltd | 0.01 | 1.18 | 1.17 |
| Low | High | |
| Unlevered beta | 0.09 | 0.13 |
| Relevered beta | 0.1 | 0.16 |
| Adjusted relevered beta | 0.4 | 0.44 |
2324.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 2324.HK:
cost_of_equity (6.10%) = 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.