271.HK WACC - Weighted Average Cost of Capital

The WACC of Asiasec Properties Ltd (271.HK) is 16.2%.

The Cost of Equity of Asiasec Properties Ltd (271.HK) is 6.15%.

The Cost of Debt of Asiasec Properties Ltd (271.HK) is 19.90%.

	Range	Selected
Cost of equity	5.20% - 7.10%	6.15%
Tax rate	1.40% - 1.50%	1.45%
Cost of debt	19.90% - 19.90%	19.90%
WACC	16.0% - 16.5%	16.2%

WACC

271.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.39	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	7.10%

Tax rate	1.40%	1.50%
Debt/Equity ratio	3.02	3.02
Cost of debt	19.90%	19.90%

After-tax WACC	16.0%	16.5%


Selected WACC	16.2%

271.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 271.HK:

cost_of_equity (6.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.