75.HK WACC - Weighted Average Cost of Capital

The WACC of YT Realty Group Ltd (75.HK) is 9.2%.

The Cost of Equity of YT Realty Group Ltd (75.HK) is 9.45%.

The Cost of Debt of YT Realty Group Ltd (75.HK) is 13.25%.

	Range	Selected
Cost of equity	6.70% - 12.20%	9.45%
Tax rate	14.20% - 44.30%	29.25%
Cost of debt	11.90% - 14.60%	13.25%
WACC	10.1% - 8.3%	9.2%

WACC

75.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.65	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	12.20%

Tax rate	14.20%	44.30%
Debt/Equity ratio	42.91	42.91
Cost of debt	11.90%	14.60%

After-tax WACC	10.1%	8.3%


Selected WACC	9.2%

75.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 75.HK:

cost_of_equity (9.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.65) + 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.