3380.HK WACC - Weighted Average Cost of Capital

The WACC of Logan Group Co Ltd (3380.HK) is 4.4%.

The Cost of Equity of Logan Group Co Ltd (3380.HK) is 12.05%.

The Cost of Debt of Logan Group Co Ltd (3380.HK) is 5.50%.

	Range	Selected
Cost of equity	9.80% - 14.30%	12.05%
Tax rate	21.30% - 27.20%	24.25%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.4% - 5.5%	4.4%

WACC

3380.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.16	1.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	14.30%

Tax rate	21.30%	27.20%
Debt/Equity ratio	24.22	24.22
Cost of debt	4.00%	7.00%

After-tax WACC	3.4%	5.5%


Selected WACC	4.4%

3380.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 3380.HK:

cost_of_equity (12.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.16) + 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.