2329.HK WACC - Weighted Average Cost of Capital

The WACC of Glory Land Company Ltd (2329.HK) is 5.0%.

The Cost of Equity of Glory Land Company Ltd (2329.HK) is 7.20%.

The Cost of Debt of Glory Land Company Ltd (2329.HK) is 5.50%.

	Range	Selected
Cost of equity	5.80% - 8.60%	7.20%
Tax rate	8.00% - 10.20%	9.10%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.7% - 6.3%	5.0%

WACC

2329.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.5	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	8.60%

Tax rate	8.00%	10.20%
Debt/Equity ratio	54.03	54.03
Cost of debt	4.00%	7.00%

After-tax WACC	3.7%	6.3%


Selected WACC	5.0%

2329.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 2329.HK:

cost_of_equity (7.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.5) + 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.