6668.HK
E Star Commercial Management Co Ltd
Price:  
1.3 
HKD
Volume:  
113,000
China | Real Estate Management & Development

6668.HK WACC - Weighted Average Cost of Capital

The WACC of E Star Commercial Management Co Ltd (6668.HK) is 7.2%.

The Cost of Equity of E Star Commercial Management Co Ltd (6668.HK) is 9.45%.
The Cost of Debt of E Star Commercial Management Co Ltd (6668.HK) is 4.25%.

RangeSelected
Cost of equity7.3% - 11.6%9.45%
Tax rate27.1% - 27.7%27.4%
Cost of debt4.0% - 4.5%4.25%
WACC5.7% - 8.6%7.2%
WACC

6668.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.741.1
Additional risk adjustments0.0%0.5%
Cost of equity7.3%11.6%
Tax rate27.1%27.7%
Debt/Equity ratio
0.560.56
Cost of debt4.0%4.5%
After-tax WACC5.7%8.6%
Selected WACC7.2%

6668.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 6668.HK:

cost_of_equity (9.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.74) + 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.