369.HK WACC - Weighted Average Cost of Capital
The WACC of Wing Tai Properties Ltd (369.HK) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.7% | 6.6% |
| Tax rate | 8.9% - 11.5% | 10.2% |
| Cost of debt | 5.5% - 7.0% | 6.25% |
| WACC | 5.1% - 6.6% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.44 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.7% |
| Tax rate | 8.9% | 11.5% |
| Debt/Equity ratio | 3.17 | 3.17 |
| Cost of debt | 5.5% | 7.0% |
| After-tax WACC | 5.1% | 6.6% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 369.HK | Wing Tai Properties Ltd | 3.17 | 0.04 | 0.01 |
| 1036.HK | Vanke Overseas Investment Holding Co Ltd | 0.05 | 1.85 | 1.78 |
| 1168.HK | Sinolink Worldwide Holdings Ltd | 1.61 | 0.87 | 0.36 |
| 1222.HK | Wang On Group Ltd | 19.48 | 1.02 | 0.06 |
| 207.HK | Joy City Property Ltd | 11.61 | 1.18 | 0.1 |
| 29.HK | Dynamic Holdings Ltd | 0 | 0.7 | 0.7 |
| 593.HK | DreamEast Group Ltd | 56.64 | -0.7 | -0.01 |
| 600.HK | China Infrastructure Investment Ltd | 0.69 | -0.03 | -0.02 |
| 859.HK | Zhongchang International Holdings Group Ltd | 7.92 | 0.23 | 0.03 |
| 878.HK | Soundwill Holdings Ltd | 0.83 | 0.13 | 0.07 |
| Low | High | |
| Unlevered beta | 0.04 | 0.09 |
| Relevered beta | 0.16 | 0.33 |
| Adjusted relevered beta | 0.44 | 0.55 |
369.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 369.HK:
cost_of_equity (6.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.44) + 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.