6166.HK WACC - Weighted Average Cost of Capital
The WACC of China Vast Industrial Urban Development Company Ltd (6166.HK) is 8.5%.
| Range | Selected | |
| Cost of equity | 5.0% - 6.4% | 5.7% |
| Tax rate | 33.3% - 36.2% | 34.75% |
| Cost of debt | 8.3% - 22.9% | 15.6% |
| WACC | 5.4% - 11.6% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.36 | 0.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 6.4% |
| Tax rate | 33.3% | 36.2% |
| Debt/Equity ratio | 1.74 | 1.74 |
| Cost of debt | 8.3% | 22.9% |
| After-tax WACC | 5.4% | 11.6% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6166.HK | China Vast Industrial Urban Development Company Ltd | 1.74 | 0.27 | 0.13 |
| 1125.HK | Lai Fung Holdings Ltd | 26.35 | 0.42 | 0.02 |
| 124.HK | Guangdong Land Holdings Ltd | 58.3 | 0.82 | 0.02 |
| 1243.HK | Wang On Properties Ltd | 9.42 | 0.66 | 0.09 |
| 216.HK | Chinney Investments Ltd | 22.72 | 0.53 | 0.03 |
| 2892.HK | Million Cities Holdings Ltd | 0 | -0.18 | -0.18 |
| 432.HK | Pacific Century Premium Developments Ltd | 23.33 | 0.38 | 0.02 |
| 497.HK | CSI Properties Ltd | 4.59 | 0.55 | 0.14 |
| 627.HK | Fullsun International Holdings Group Co Ltd | 2.54 | -0.11 | -0.04 |
| 938.HK | Man Sang International Ltd | 4.42 | -1.11 | -0.29 |
| Low | High | |
| Unlevered beta | 0.02 | 0.03 |
| Relevered beta | 0.04 | 0.06 |
| Adjusted relevered beta | 0.36 | 0.37 |
6166.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 6166.HK:
cost_of_equity (5.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.