337.HK WACC - Weighted Average Cost of Capital

The WACC of Greenland Hong Kong Holdings Ltd (337.HK) is 6.8%.

The Cost of Equity of Greenland Hong Kong Holdings Ltd (337.HK) is 62.80%.

The Cost of Debt of Greenland Hong Kong Holdings Ltd (337.HK) is 6.55%.

	Range	Selected
Cost of equity	39.90% - 85.70%	62.80%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	6.10% - 7.00%	6.55%
WACC	5.8% - 7.8%	6.8%

WACC

337.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	6.2	11.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	39.90%	85.70%

Tax rate	22.10%	22.30%
Debt/Equity ratio	33.57	33.57
Cost of debt	6.10%	7.00%

After-tax WACC	5.8%	7.8%


Selected WACC	6.8%

337.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 337.HK:

cost_of_equity (62.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (6.2) + 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.