83.HK
Sino Land Co Ltd
Price:  
8.65 
HKD
Volume:  
5,410,416
Hong Kong | Real Estate Management & Development

83.HK WACC - Weighted Average Cost of Capital

The WACC of Sino Land Co Ltd (83.HK) is 6.3%.

The Cost of Equity of Sino Land Co Ltd (83.HK) is 6.3%.
The Cost of Debt of Sino Land Co Ltd (83.HK) is 4.25%.

RangeSelected
Cost of equity5.3% - 7.3%6.3%
Tax rate16.2% - 18.9%17.55%
Cost of debt4.0% - 4.5%4.25%
WACC5.3% - 7.3%6.3%
WACC

83.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.40.5
Additional risk adjustments0.0%0.5%
Cost of equity5.3%7.3%
Tax rate16.2%18.9%
Debt/Equity ratio
0.010.01
Cost of debt4.0%4.5%
After-tax WACC5.3%7.3%
Selected WACC6.3%

83.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 83.HK:

cost_of_equity (6.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.4) + 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.