497.HK
CSI Properties Ltd
Price:  
0.18 
HKD
Volume:  
535,000.00
Hong Kong | Real Estate Management & Development
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497.HK WACC - Weighted Average Cost of Capital

The WACC of CSI Properties Ltd (497.HK) is 11.4%.

The Cost of Equity of CSI Properties Ltd (497.HK) is 5.85%.
The Cost of Debt of CSI Properties Ltd (497.HK) is 13.70%.

Range Selected
Cost of equity 5.10% - 6.60% 5.85%
Tax rate 5.40% - 6.40% 5.90%
Cost of debt 4.50% - 22.90% 13.70%
WACC 4.4% - 18.5% 11.4%
WACC

497.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.38 0.4
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 6.60%
Tax rate 5.40% 6.40%
Debt/Equity ratio 4.07 4.07
Cost of debt 4.50% 22.90%
After-tax WACC 4.4% 18.5%
Selected WACC 11.4%

497.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 497.HK:

cost_of_equity (5.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.38) + 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.