3919.HK WACC - Weighted Average Cost of Capital

The WACC of Golden Power Group Holdings Ltd (3919.HK) is 10.8%.

The Cost of Equity of Golden Power Group Holdings Ltd (3919.HK) is 10.30%.

The Cost of Debt of Golden Power Group Holdings Ltd (3919.HK) is 13.80%.

	Range	Selected
Cost of equity	9.10% - 11.50%	10.30%
Tax rate	18.30% - 21.40%	19.85%
Cost of debt	4.70% - 22.90%	13.80%
WACC	4.6% - 17.0%	10.8%

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	1.04	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	11.50%

Tax rate	18.30%	21.40%
Debt/Equity ratio	5.83	5.83
Cost of debt	4.70%	22.90%

After-tax WACC	4.6%	17.0%


Selected WACC	10.8%

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 (10.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.04) + 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.