583.HK WACC - Weighted Average Cost of Capital
The WACC of Great Wall Pan Asia Holdings Ltd (583.HK) is 7.5%.
| Range | Selected | |
| Cost of equity | 5.3% - 8.7% | 7% |
| Tax rate | 2.1% - 2.3% | 2.2% |
| Cost of debt | 4.0% - 11.4% | 7.7% |
| WACC | 4.0% - 10.9% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.41 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 8.7% |
| Tax rate | 2.1% | 2.3% |
| Debt/Equity ratio | 14.03 | 14.03 |
| Cost of debt | 4.0% | 11.4% |
| After-tax WACC | 4.0% | 10.9% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 583.HK | Great Wall Pan Asia Holdings Ltd | 14.03 | 0.01 | 0 |
| 1009.HK | International Entertainment Corp | 0.63 | 0.66 | 0.41 |
| 202.HK | EverChina Intl Holdings Co Ltd | 0.54 | -0.1 | -0.07 |
| 266.HK | Tian Teck Land Ltd | 0.21 | 0.02 | 0.01 |
| 287.HK | Winfair Investment Co Ltd | 0.11 | -0.1 | -0.09 |
| 3699.HK | Everbright Grand China Assets Ltd | 0 | 0.76 | 0.76 |
| 565.HK | Art Group Holdings Ltd | 0.22 | 0.77 | 0.64 |
| 613.HK | Planetree International Development Ltd | 0.28 | -0.05 | -0.04 |
| 616.HK | Eminence Enterprise Ltd | 19.84 | 0.9 | 0.04 |
| 75.HK | YT Realty Group Ltd | 42.62 | 1.32 | 0.03 |
| Low | High | |
| Unlevered beta | 0.01 | 0.04 |
| Relevered beta | 0.12 | 0.54 |
| Adjusted relevered beta | 0.41 | 0.69 |
583.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 583.HK:
cost_of_equity (7.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.41) + 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.