678.HK WACC - Weighted Average Cost of Capital

The WACC of Genting Hong Kong Ltd (678.HK) is 6.1%.

The Cost of Equity of Genting Hong Kong Ltd (678.HK) is 8.30%.

The Cost of Debt of Genting Hong Kong Ltd (678.HK) is 5.65%.

	Range	Selected
Cost of equity	6.50% - 10.10%	8.30%
Tax rate	1.60% - 2.90%	2.25%
Cost of debt	4.30% - 7.00%	5.65%
WACC	4.7% - 7.5%	6.1%

WACC

678.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.61	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	10.10%

Tax rate	1.60%	2.90%
Debt/Equity ratio	4.12	4.12
Cost of debt	4.30%	7.00%

After-tax WACC	4.7%	7.5%


Selected WACC	6.1%

678.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 678.HK:

cost_of_equity (8.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.61) + 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.