266.HK WACC - Weighted Average Cost of Capital
The WACC of Tian Teck Land Ltd (266.HK) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.3% - 8.2% | 6.75% |
| Tax rate | 3.1% - 4.6% | 3.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.0% - 7.5% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.4 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 8.2% |
| Tax rate | 3.1% | 4.6% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.0% | 7.5% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 266.HK | Tian Teck Land Ltd | 0.21 | 0.02 | 0.01 |
| 1009.HK | International Entertainment Corp | 0.63 | 0.66 | 0.41 |
| 108.HK | GR Properties Ltd | 1.27 | 1.81 | 0.81 |
| 194.HK | Liu Chong Hing Investment Ltd | 2.16 | 0.21 | 0.07 |
| 224.HK | Pioneer Global Group Ltd | 3.29 | 0.44 | 0.1 |
| 3699.HK | Everbright Grand China Assets Ltd | 0 | 0.76 | 0.76 |
| 565.HK | Art Group Holdings Ltd | 0.22 | 0.77 | 0.64 |
| 715.HK | China Oceanwide Holdings Ltd | 29.51 | 1.07 | 0.04 |
| 8426.HK | Modern Living Investments Holdings Ltd | 0.01 | 0.32 | 0.32 |
| 89.HK | Tai Sang Land Development Ltd | 5.23 | 0.32 | 0.05 |
| Low | High | |
| Unlevered beta | 0.09 | 0.36 |
| Relevered beta | 0.1 | 0.43 |
| Adjusted relevered beta | 0.4 | 0.62 |
266.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 266.HK:
cost_of_equity (6.75%) = 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.