59.HK
Skyfame Realty (Holdings) Ltd
Price:  
0.01 
HKD
Volume:  
1,448,000
China | Real Estate Management & Development

59.HK WACC - Weighted Average Cost of Capital

The WACC of Skyfame Realty (Holdings) Ltd (59.HK) is 5.3%.

The Cost of Equity of Skyfame Realty (Holdings) Ltd (59.HK) is 138.1%.
The Cost of Debt of Skyfame Realty (Holdings) Ltd (59.HK) is 7.45%.

RangeSelected
Cost of equity95.8% - 180.4%138.1%
Tax rate31.5% - 47.5%39.5%
Cost of debt7.0% - 7.9%7.45%
WACC5.3% - 5.2%5.3%
WACC

59.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta15.5425.29
Additional risk adjustments0.0%0.5%
Cost of equity95.8%180.4%
Tax rate31.5%47.5%
Debt/Equity ratio
166.68166.68
Cost of debt7.0%7.9%
After-tax WACC5.3%5.2%
Selected WACC5.3%

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.