6968.HK WACC - Weighted Average Cost of Capital

The WACC of Ganglong China Property Group Ltd (6968.HK) is 6.1%.

The Cost of Equity of Ganglong China Property Group Ltd (6968.HK) is 74.80%.

The Cost of Debt of Ganglong China Property Group Ltd (6968.HK) is 7.25%.

	Range	Selected
Cost of equity	40.80% - 108.80%	74.80%
Tax rate	41.60% - 45.10%	43.35%
Cost of debt	7.00% - 7.50%	7.25%
WACC	5.1% - 7.0%	6.1%

WACC

6968.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	6.35	15.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	40.80%	108.80%

Tax rate	41.60%	45.10%
Debt/Equity ratio	35.44	35.44
Cost of debt	7.00%	7.50%

After-tax WACC	5.1%	7.0%


Selected WACC	6.1%

6968.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 6968.HK:

cost_of_equity (74.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (6.35) + 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.