The WACC of Asian Citrus Holdings Ltd (73.HK) is 6.0%.
Range | Selected | |
Cost of equity | 5.1% - 6.8% | 5.95% |
Tax rate | 5.5% - 15.3% | 10.4% |
Cost of debt | 7.0% - 7.0% | 7% |
WACC | 5.1% - 6.8% | 6.0% |
Category | Low | High |
Long-term bond rate | 2.9% | 3.4% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.38 | 0.43 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.1% | 6.8% |
Tax rate | 5.5% | 15.3% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 7.0% | 7.0% |
After-tax WACC | 5.1% | 6.8% |
Selected WACC | 6.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
73.HK | Asian Citrus Holdings Ltd | 0 | 0.6 | 0.59 |
1280.HK | Qidian International Co Ltd | 0.02 | -0.82 | -0.8 |
1957.HK | MBV International Ltd | 0.09 | 0.23 | 0.22 |
2110.HK | Yue Kan Holdings Ltd | 0.17 | 0.16 | 0.14 |
2132.HK | Landrich Holding Ltd | 0.16 | 0.07 | 0.06 |
8173.HK | Union Asia Enterprise Holdings Ltd | 0.01 | 0.61 | 0.6 |
8620.HK | Asia-express Logistics Holdings Ltd | 0.71 | -0.12 | -0.07 |
ITS.VN | Vinacomin Investment, Trading And Service JSC | 7.43 | 0.63 | 0.08 |
TDG.VN | Thai Duong Petrol JSC | 6.19 | 0.97 | 0.15 |
Low | High | |
Unlevered beta | 0.09 | 0.15 |
Relevered beta | 0.07 | 0.15 |
Adjusted relevered beta | 0.38 | 0.43 |
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 73.HK:
cost_of_equity (5.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.38) + 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.