613.HK
Planetree International Development Ltd
Price:  
1.63 
HKD
Volume:  
3,152,200.00
Hong Kong | Real Estate Management & Development
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613.HK WACC - Weighted Average Cost of Capital

The WACC of Planetree International Development Ltd (613.HK) is 5.3%.

The Cost of Equity of Planetree International Development Ltd (613.HK) is 5.70%.
The Cost of Debt of Planetree International Development Ltd (613.HK) is 5.60%.

Range Selected
Cost of equity 5.00% - 6.40% 5.70%
Tax rate 13.60% - 43.70% 28.65%
Cost of debt 4.20% - 7.00% 5.60%
WACC 4.7% - 5.9% 5.3%
WACC

613.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.35 0.36
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.00% 6.40%
Tax rate 13.60% 43.70%
Debt/Equity ratio 0.27 0.27
Cost of debt 4.20% 7.00%
After-tax WACC 4.7% 5.9%
Selected WACC 5.3%

613.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 613.HK:

cost_of_equity (5.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.35) + 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.