627.HK WACC - Weighted Average Cost of Capital
The WACC of Fullsun International Holdings Group Co Ltd (627.HK) is 5.5%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.3% | 5.6% |
| Tax rate | 1.4% - 4.1% | 2.75% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.7% - 6.4% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.34 | 0.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 6.3% |
| Tax rate | 1.4% | 4.1% |
| Debt/Equity ratio | 0.32 | 0.32 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.7% | 6.4% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 627.HK | Fullsun International Holdings Group Co Ltd | 0.32 | -0.03 | -0.02 |
| 1125.HK | Lai Fung Holdings Ltd | 27.82 | 0.34 | 0.01 |
| 124.HK | Guangdong Land Holdings Ltd | 53.11 | 0.88 | 0.02 |
| 1243.HK | Wang On Properties Ltd | 9.71 | 0.69 | 0.07 |
| 1560.HK | Star Properties Group (Cayman Islands) Ltd | 21.69 | 0.37 | 0.02 |
| 216.HK | Chinney Investments Ltd | 23.9 | 0.55 | 0.02 |
| 2330.HK | China Uptown Group Co Ltd | 0.29 | 0.36 | 0.28 |
| 2892.HK | Million Cities Holdings Ltd | 0 | -0.22 | -0.22 |
| 432.HK | Pacific Century Premium Developments Ltd | 24.14 | 0.4 | 0.02 |
| 938.HK | Man Sang International Ltd | 7.18 | -1.05 | -0.13 |
| Low | High | |
| Unlevered beta | 0.01 | 0.02 |
| Relevered beta | 0.01 | 0.01 |
| Adjusted relevered beta | 0.34 | 0.34 |
627.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 627.HK:
cost_of_equity (5.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.