69.HK WACC - Weighted Average Cost of Capital

The WACC of Shangri-La Asia Ltd (69.HK) is 9.3%.

The Cost of Equity of Shangri-La Asia Ltd (69.HK) is 6.15%.

The Cost of Debt of Shangri-La Asia Ltd (69.HK) is 11.95%.

	Range	Selected
Cost of equity	5.10% - 7.20%	6.15%
Tax rate	6.40% - 15.70%	11.05%
Cost of debt	4.00% - 19.90%	11.95%
WACC	4.0% - 14.6%	9.3%

WACC

69.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.37	0.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.10%	7.20%

Tax rate	6.40%	15.70%
Debt/Equity ratio	3.46	3.46
Cost of debt	4.00%	19.90%

After-tax WACC	4.0%	14.6%


Selected WACC	9.3%

69.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 69.HK:

cost_of_equity (6.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.37) + 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.