513.HK WACC - Weighted Average Cost of Capital
The WACC of Continental Holdings Ltd (513.HK) is 4.2%.
| Range | Selected | |
| Cost of equity | 5.4% - 13.5% | 9.45% |
| Tax rate | 23.3% - 39.9% | 31.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.3% - 5.1% | 4.2% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.43 | 1.38 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 13.5% |
| Tax rate | 23.3% | 39.9% |
| Debt/Equity ratio | 9.64 | 9.64 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.3% | 5.1% |
| Selected WACC | 4.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 513.HK | Continental Holdings Ltd | 9.64 | 0.26 | 0.03 |
| 1520.HK | CEFC Hong Kong Financial Investment Company Ltd | 0.05 | -0.67 | -0.65 |
| 1657.HK | SG Group Holdings Ltd | 0.02 | 0.47 | 0.46 |
| 1825.HK | Sterling Group Holdings Ltd | 6.46 | 0.08 | 0.01 |
| 1842.HK | Grown Up Group Investment Holdings Ltd | 0.78 | 0.82 | 0.53 |
| 2011.HK | China Apex Group Ltd | 0.26 | 0.02 | 0.02 |
| 213.HK | National Electronics Holdings Ltd | 14.78 | 0.21 | 0.02 |
| 475.HK | Central Development Holdings Ltd | 0.66 | -0.37 | -0.26 |
| 643.HK | Carry Wealth Holdings Ltd | 0.01 | 0.59 | 0.58 |
| 844.HK | Greatime International Holdings Ltd | 0.89 | 1.18 | 0.73 |
| Low | High | |
| Unlevered beta | 0.02 | 0.2 |
| Relevered beta | 0.15 | 1.57 |
| Adjusted relevered beta | 0.43 | 1.38 |
513.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 513.HK:
cost_of_equity (9.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.43) + 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.