63.HK WACC - Weighted Average Cost of Capital
The WACC of China Asia Valley Group Ltd (63.HK) is 9.5%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.2% | 6.3% |
| Tax rate | 5.1% - 8.6% | 6.85% |
| Cost of debt | 6.0% - 19.9% | 12.95% |
| WACC | 5.6% - 13.4% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.33 | 0.4 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.4% | 7.2% |
| Tax rate | 5.1% | 8.6% |
| Debt/Equity ratio | 1.33 | 1.33 |
| Cost of debt | 6.0% | 19.9% |
| After-tax WACC | 5.6% | 13.4% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 63.HK | China Asia Valley Group Ltd | 1.33 | 0.31 | 0.14 |
| 202.HK | EverChina Intl Holdings Co Ltd | 0.54 | -0.15 | -0.1 |
| 266.HK | Tian Teck Land Ltd | 0.21 | 0 | 0 |
| 287.HK | Winfair Investment Co Ltd | 0.11 | -0.1 | -0.09 |
| 36.HK | Far East Holdings International Ltd | 4.28 | 0.75 | 0.15 |
| 499.HK | Qingdao Holdings International Ltd | 3.42 | 0.34 | 0.08 |
| 583.HK | Great Wall Pan Asia Holdings Ltd | 14.31 | 0.03 | 0 |
| 616.HK | Eminence Enterprise Ltd | 25.05 | 0.9 | 0.04 |
| 864.HK | Wing Lee Property Investments Ltd | 2.01 | 0.18 | 0.06 |
| 925.HK | Beijing Properties (Holdings) Ltd | 29.02 | -0.19 | -0.01 |
| Low | High | |
| Unlevered beta | 0 | 0.05 |
| Relevered beta | 0 | 0.1 |
| Adjusted relevered beta | 0.33 | 0.4 |
63.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 63.HK:
cost_of_equity (6.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.