683.HK WACC - Weighted Average Cost of Capital

The WACC of Kerry Properties Ltd (683.HK) is 5.8%.

The Cost of Equity of Kerry Properties Ltd (683.HK) is 7.75%.

The Cost of Debt of Kerry Properties Ltd (683.HK) is 7.70%.

	Range	Selected
Cost of equity	6.30% - 9.20%	7.75%
Tax rate	34.30% - 36.90%	35.60%
Cost of debt	4.00% - 11.40%	7.70%
WACC	3.8% - 7.8%	5.8%

WACC

683.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.57	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	9.20%

Tax rate	34.30%	36.90%
Debt/Equity ratio	2.12	2.12
Cost of debt	4.00%	11.40%

After-tax WACC	3.8%	7.8%


Selected WACC	5.8%

683.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 683.HK:

cost_of_equity (7.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.57) + 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.