25.HK WACC - Weighted Average Cost of Capital
The WACC of Chevalier International Holdings Ltd (25.HK) is 9.6%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.4% | 7.35% |
| Tax rate | 16.4% - 24.9% | 20.65% |
| Cost of debt | 4.0% - 22.9% | 13.45% |
| WACC | 4.0% - 15.3% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.57 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.4% |
| Tax rate | 16.4% | 24.9% |
| Debt/Equity ratio | 3.8 | 3.8 |
| Cost of debt | 4.0% | 22.9% |
| After-tax WACC | 4.0% | 15.3% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 25.HK | Chevalier International Holdings Ltd | 3.8 | 0.31 | 0.07 |
| 003550.KS | LG Corp | 0.05 | 0.7 | 0.67 |
| 138.HK | CCT Fortis Holdings Ltd | 14.45 | -0.11 | -0.01 |
| 242.HK | Shun Tak Holdings Ltd | 8.17 | 0.79 | 0.1 |
| 274.HK | China Billion Resources Ltd | 5.67 | 0.03 | 0 |
| 363.HK | Shanghai Industrial Holdings Ltd | 3.92 | 0.55 | 0.13 |
| 53.HK | Guoco Group Ltd | 1.98 | 0.25 | 0.09 |
| 659.HK | NWS Holdings Ltd | 1.01 | 0.34 | 0.19 |
| BCG.VN | Bamboo Capital JSC | 4.44 | 1.48 | 0.32 |
| JPASSOCIAT.NS | Jaiprakash Associates Ltd | 19.14 | -0.18 | -0.01 |
| Low | High | |
| Unlevered beta | 0.09 | 0.11 |
| Relevered beta | 0.36 | 0.46 |
| Adjusted relevered beta | 0.57 | 0.64 |
25.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 25.HK:
cost_of_equity (7.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.57) + 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.