3913.HK
Kwg Living Group Holdings Ltd
Price:  
0.32 
HKD
Volume:  
407,334.00
China | Real Estate Management & Development
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3913.HK WACC - Weighted Average Cost of Capital

The WACC of Kwg Living Group Holdings Ltd (3913.HK) is 10.0%.

The Cost of Equity of Kwg Living Group Holdings Ltd (3913.HK) is 15.30%.
The Cost of Debt of Kwg Living Group Holdings Ltd (3913.HK) is 5.70%.

Range Selected
Cost of equity 13.50% - 17.10% 15.30%
Tax rate 25.80% - 37.00% 31.40%
Cost of debt 4.40% - 7.00% 5.70%
WACC 8.7% - 11.2% 10.0%
WACC

3913.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.78 1.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.50% 17.10%
Tax rate 25.80% 37.00%
Debt/Equity ratio 0.87 0.87
Cost of debt 4.40% 7.00%
After-tax WACC 8.7% 11.2%
Selected WACC 10.0%

3913.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 3913.HK:

cost_of_equity (15.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.78) + 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.