582.HK
Landing International Development Ltd
Price:  
0.15 
HKD
Volume:  
280,140
Hong Kong | Real Estate Management & Development

582.HK WACC - Weighted Average Cost of Capital

The WACC of Landing International Development Ltd (582.HK) is 6.4%.

The Cost of Equity of Landing International Development Ltd (582.HK) is 6.2%.
The Cost of Debt of Landing International Development Ltd (582.HK) is 6.55%.

RangeSelected
Cost of equity5.2% - 7.2%6.2%
Tax rate0.4% - 1.0%0.7%
Cost of debt6.1% - 7.0%6.55%
WACC5.9% - 7.0%6.4%
WACC

582.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.390.48
Additional risk adjustments0.0%0.5%
Cost of equity5.2%7.2%
Tax rate0.4%1.0%
Debt/Equity ratio
5.245.24
Cost of debt6.1%7.0%
After-tax WACC5.9%7.0%
Selected WACC6.4%

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 (6.20%) = 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.