361.HK WACC - Weighted Average Cost of Capital

The WACC of Sino Golf Holdings Ltd (361.HK) is 7.1%.

The Cost of Equity of Sino Golf Holdings Ltd (361.HK) is 6.80%.

The Cost of Debt of Sino Golf Holdings Ltd (361.HK) is 9.60%.

	Range	Selected
Cost of equity	5.70% - 7.90%	6.80%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	4.60% - 14.60%	9.60%
WACC	4.9% - 9.2%	7.1%

WACC

361.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.48	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	7.90%

Tax rate	22.10%	22.30%
Debt/Equity ratio	0.59	0.59
Cost of debt	4.60%	14.60%

After-tax WACC	4.9%	9.2%


Selected WACC	7.1%

361.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 361.HK:

cost_of_equity (6.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.48) + 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.