The WACC of Great Harvest Maeta Group Holdings Ltd (3683.HK) is 4.9%.
Range | Selected | |
Cost of equity | 4.1% - 6.4% | 5.25% |
Tax rate | 6.6% - 15.7% | 11.15% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 3.8% - 6.0% | 4.9% |
Category | Low | High |
Long-term bond rate | 2.9% | 3.4% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.21 | 0.37 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.1% | 6.4% |
Tax rate | 6.6% | 15.7% |
Debt/Equity ratio | 4.26 | 4.26 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 3.8% | 6.0% |
Selected WACC | 4.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
3683.HK | Great Harvest Maeta Group Holdings Ltd | 4.26 | 0.07 | 0.02 |
044450.KS | KSS Line Ltd | 5.6 | 0.06 | 0.01 |
1145.HK | Courage Investment Group Ltd | 0 | -0.03 | -0.03 |
1308.HK | SITC International Holdings Co Ltd | 0.04 | 0.13 | 0.12 |
137.HK | Jinhui Holdings Co Ltd | 2.97 | -0.19 | -0.05 |
1549.HK | Ever Harvest Group Holdings Ltd | 0.43 | 0.71 | 0.51 |
351.HK | Asia Energy Logistics Group Ltd | 0.03 | -0.26 | -0.26 |
560.HK | Chu Kong Shipping Enterprises Group Co Ltd | 0.52 | 0.47 | 0.32 |
BTM.SI | Penguin International Ltd | 0.23 | -0.87 | -0.72 |
SYSCORP.KL | Shin Yang Shipping Corporation Bhd | 0.43 | -0.23 | -0.17 |
Low | High | |
Unlevered beta | -0.04 | 0.01 |
Relevered beta | -0.18 | 0.06 |
Adjusted relevered beta | 0.21 | 0.37 |
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 3683.HK:
cost_of_equity (5.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.21) + 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.