582.HK WACC - Weighted Average Cost of Capital
The WACC of Landing International Development Ltd (582.HK) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.3% | 6.25% |
| Tax rate | 0.4% - 1.0% | 0.7% |
| Cost of debt | 6.1% - 7.0% | 6.55% |
| WACC | 5.9% - 7.0% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.39 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.3% |
| Tax rate | 0.4% | 1.0% |
| Debt/Equity ratio | 5.61 | 5.61 |
| Cost of debt | 6.1% | 7.0% |
| After-tax WACC | 5.9% | 7.0% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 582.HK | Landing International Development Ltd | 5.61 | -0.24 | -0.04 |
| 1125.HK | Lai Fung Holdings Ltd | 27.82 | 0.34 | 0.01 |
| 1207.HK | SRE Group Ltd | 20.99 | 1.23 | 0.06 |
| 169.HK | Wanda Hotel Development Co Ltd | 0.09 | 0.44 | 0.4 |
| 216.HK | Chinney Investments Ltd | 23.9 | 0.55 | 0.02 |
| 2892.HK | Million Cities Holdings Ltd | 0 | -0.22 | -0.22 |
| 367.HK | Chuang's Consortium International Ltd | 6.81 | 0.63 | 0.08 |
| 3688.HK | Top Spring International Holdings Ltd | 14.1 | 1.05 | 0.07 |
| 726.HK | DIT Group Ltd | 7.74 | 0.13 | 0.02 |
| 938.HK | Man Sang International Ltd | 7.18 | -1.05 | -0.13 |
| Low | High | |
| Unlevered beta | 0.01 | 0.04 |
| Relevered beta | 0.09 | 0.24 |
| Adjusted relevered beta | 0.39 | 0.49 |
582.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 582.HK:
cost_of_equity (6.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.