593.HK WACC - Weighted Average Cost of Capital
The WACC of DreamEast Group Ltd (593.HK) is 4.6%.
| Range | Selected | |
| Cost of equity | 4.6% - 10.7% | 7.65% |
| Tax rate | 16.5% - 19.4% | 17.95% |
| Cost of debt | 4.1% - 7.0% | 5.55% |
| WACC | 3.5% - 5.7% | 4.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.29 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.6% | 10.7% |
| Tax rate | 16.5% | 19.4% |
| Debt/Equity ratio | 56.64 | 56.64 |
| Cost of debt | 4.1% | 7.0% |
| After-tax WACC | 3.5% | 5.7% |
| Selected WACC | 4.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 593.HK | DreamEast Group Ltd | 56.64 | -0.7 | -0.01 |
| 1036.HK | Vanke Overseas Investment Holding Co Ltd | 0.04 | 1.87 | 1.8 |
| 1168.HK | Sinolink Worldwide Holdings Ltd | 1.13 | 0.93 | 0.48 |
| 287.HK | Winfair Investment Co Ltd | 0.1 | -0.01 | -0.01 |
| 369.HK | Wing Tai Properties Ltd | 2.64 | 0.02 | 0.01 |
| 583.HK | Great Wall Pan Asia Holdings Ltd | 15.62 | 0.05 | 0 |
| 600.HK | China Infrastructure Investment Ltd | 0.69 | -0.03 | -0.02 |
| 859.HK | Zhongchang International Holdings Group Ltd | 5.46 | 0.21 | 0.04 |
| 878.HK | Soundwill Holdings Ltd | 0.82 | 0.13 | 0.08 |
| OMRE.JK | Indonesia Prima Property Tbk PT | 0.03 | -0.18 | -0.17 |
| Low | High | |
| Unlevered beta | 0 | 0.02 |
| Relevered beta | -0.06 | 0.97 |
| Adjusted relevered beta | 0.29 | 0.98 |
593.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 593.HK:
cost_of_equity (7.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.29) + 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.