355.HK
Century City International Holdings Ltd
Price:  
0.04 
HKD
Volume:  
34,998,000.00
Hong Kong | Hotels, Restaurants & Leisure
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355.HK WACC - Weighted Average Cost of Capital

The WACC of Century City International Holdings Ltd (355.HK) is 5.2%.

The Cost of Equity of Century City International Holdings Ltd (355.HK) is 18.40%.
The Cost of Debt of Century City International Holdings Ltd (355.HK) is 5.80%.

Range Selected
Cost of equity 12.40% - 24.40% 18.40%
Tax rate 2.20% - 17.90% 10.05%
Cost of debt 4.60% - 7.00% 5.80%
WACC 4.5% - 5.9% 5.2%
WACC

355.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.59 2.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.40% 24.40%
Tax rate 2.20% 17.90%
Debt/Equity ratio 172.76 172.76
Cost of debt 4.60% 7.00%
After-tax WACC 4.5% 5.9%
Selected WACC 5.2%

355.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 355.HK:

cost_of_equity (18.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.59) + 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.