3662.HK WACC - Weighted Average Cost of Capital
The WACC of Aoyuan Healthy Life Group Co Ltd (3662.HK) is 8.6%.
| Range | Selected | |
| Cost of equity | 7.7% - 11.8% | 9.75% |
| Tax rate | 20.4% - 22.0% | 21.2% |
| Cost of debt | 4.0% - 4.9% | 4.45% |
| WACC | 6.8% - 10.3% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.81 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 11.8% |
| Tax rate | 20.4% | 22.0% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 4.0% | 4.9% |
| After-tax WACC | 6.8% | 10.3% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3662.HK | Aoyuan Healthy Life Group Co Ltd | 0.23 | 0.42 | 0.36 |
| 000056.SZ | Shenzhen Wongtee International Enterprise Co Ltd | 1.27 | 1.82 | 0.92 |
| 002344.SZ | Haining China Leather Market Co Ltd | 0.33 | 0.67 | 0.53 |
| 002968.SZ | Chongqing New Dazheng Property Group Co Ltd | 0.04 | 1.19 | 1.16 |
| 2156.HK | C&D Property Management Group Co Ltd | 0.01 | 0.66 | 0.66 |
| 2168.HK | Kaisa Prosperity Holdings Ltd | 0.02 | 1.58 | 1.56 |
| 603682.SS | Shanghai Golden Union Commercial Management Co Ltd | 1.37 | 0.73 | 0.35 |
| 6958.HK | Zhenro Services Group Ltd | 2.41 | 0.65 | 0.22 |
| 873.HK | Shimao Services Holdings Ltd | 0.34 | 2.08 | 1.64 |
| 900939.SS | Shanghai Huili Building Materials Co Ltd | 0.01 | 1.48 | 1.46 |
| Low | High | |
| Unlevered beta | 0.6 | 1.01 |
| Relevered beta | 0.72 | 1.19 |
| Adjusted relevered beta | 0.81 | 1.13 |
3662.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 3662.HK:
cost_of_equity (9.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.81) + 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.