528.HK WACC - Weighted Average Cost of Capital

The WACC of Kingdom Holdings Ltd (528.HK) is 8.1%.

The Cost of Equity of Kingdom Holdings Ltd (528.HK) is 14.05%.

The Cost of Debt of Kingdom Holdings Ltd (528.HK) is 5.80%.

	Range	Selected
Cost of equity	12.00% - 16.10%	14.05%
Tax rate	26.40% - 26.60%	26.50%
Cost of debt	4.60% - 7.00%	5.80%
WACC	6.7% - 9.4%	8.1%

WACC

528.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.53	1.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	16.10%

Tax rate	26.40%	26.60%
Debt/Equity ratio	1.58	1.58
Cost of debt	4.60%	7.00%

After-tax WACC	6.7%	9.4%


Selected WACC	8.1%

528.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 528.HK:

cost_of_equity (14.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.53) + 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.