533.HK
Goldlion Holdings Ltd
Price:  
1.47 
HKD
Volume:  
436,000.00
Hong Kong | Specialty Retail
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533.HK WACC - Weighted Average Cost of Capital

The WACC of Goldlion Holdings Ltd (533.HK) is 6.0%.

The Cost of Equity of Goldlion Holdings Ltd (533.HK) is 6.00%.
The Cost of Debt of Goldlion Holdings Ltd (533.HK) is 4.70%.

Range Selected
Cost of equity 5.00% - 7.00% 6.00%
Tax rate 11.20% - 12.90% 12.05%
Cost of debt 4.00% - 5.40% 4.70%
WACC 5.0% - 7.0% 6.0%
WACC

533.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.36 0.45
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.00% 7.00%
Tax rate 11.20% 12.90%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 5.40%
After-tax WACC 5.0% 7.0%
Selected WACC 6.0%

533.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 533.HK:

cost_of_equity (6.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.