533.HK WACC - Weighted Average Cost of Capital

The WACC of Goldlion Holdings Ltd (533.HK) is 8.0%.

The Cost of Equity of Goldlion Holdings Ltd (533.HK) is 8.10%.

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

	Range	Selected
Cost of equity	5.60% - 10.60%	8.10%
Tax rate	11.20% - 12.90%	12.05%
Cost of debt	4.00% - 5.40%	4.70%
WACC	5.6% - 10.5%	8.0%

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	0.46	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	10.60%

Tax rate	11.20%	12.90%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	5.40%

After-tax WACC	5.6%	10.5%


Selected WACC	8.0%

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 (8.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.46) + 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.