3919.HK WACC - Weighted Average Cost of Capital

The WACC of Golden Power Group Holdings Ltd (3919.HK) is 12.7%.

The Cost of Equity of Golden Power Group Holdings Ltd (3919.HK) is 28.10%.

The Cost of Debt of Golden Power Group Holdings Ltd (3919.HK) is 13.55%.

	Range	Selected
Cost of equity	9.90% - 46.30%	28.10%
Tax rate	18.30% - 21.40%	19.85%
Cost of debt	4.20% - 22.90%	13.55%
WACC	4.1% - 21.2%	12.7%

WACC

3919.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.17	6.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	46.30%

Tax rate	18.30%	21.40%
Debt/Equity ratio	7.83	7.83
Cost of debt	4.20%	22.90%

After-tax WACC	4.1%	21.2%


Selected WACC	12.7%

3919.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 3919.HK:

cost_of_equity (28.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.17) + 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.