59.HK WACC - Weighted Average Cost of Capital
The WACC of Skyfame Realty (Holdings) Ltd (59.HK) is 5.3%.
| Range | Selected | |
| Cost of equity | 95.8% - 180.4% | 138.1% |
| Tax rate | 31.5% - 47.5% | 39.5% |
| Cost of debt | 7.0% - 7.9% | 7.45% |
| WACC | 5.3% - 5.2% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 15.54 | 25.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 95.8% | 180.4% |
| Tax rate | 31.5% | 47.5% |
| Debt/Equity ratio | 166.68 | 166.68 |
| Cost of debt | 7.0% | 7.9% |
| After-tax WACC | 5.3% | 5.2% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 59.HK | Skyfame Realty (Holdings) Ltd | 166.68 | 1.72 | 0.02 |
| 000609.SZ | Beijing Zodi Investment Co Ltd | 0.93 | 0.44 | 0.3 |
| 000797.SZ | China Wuyi Co Ltd | 2.31 | 1.28 | 0.58 |
| 000918.SZ | China Calxon Group Co Ltd | 7.39 | 1.54 | 0.32 |
| 600162.SS | Shenzhen Heungkong Holding Co Ltd | 0.85 | 1.43 | 0.99 |
| 600185.SS | Gree Real Estate Co Ltd | 1.19 | 1.01 | 0.62 |
| 600683.SS | Metro Land Corporation Ltd | 14.43 | 1.16 | 0.13 |
| 600736.SS | Suzhou New District Hi-Tech Industrial Co Ltd | 7.46 | 0.95 | 0.19 |
| 601512.SS | China-Singapore Suzhou Industrial Park Development Group Co Ltd | 0.97 | 0.91 | 0.6 |
| 6111.HK | DaFa Properties Group Ltd | 180.98 | 1.44 | 0.01 |
| Low | High | |
| Unlevered beta | 0.26 | 0.42 |
| Relevered beta | 22.7 | 37.25 |
| Adjusted relevered beta | 15.54 | 25.29 |
59.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 59.HK:
cost_of_equity (138.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (15.54) + 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.