8315.HK
Greatwalle Inc
Price:  
0.20 
HKD
Volume:  
10,000.00
Hong Kong | Commercial Services & Supplies
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8315.HK WACC - Weighted Average Cost of Capital

The WACC of Greatwalle Inc (8315.HK) is 6.0%.

The Cost of Equity of Greatwalle Inc (8315.HK) is 6.20%.
The Cost of Debt of Greatwalle Inc (8315.HK) is 5.65%.

Range Selected
Cost of equity 5.40% - 7.00% 6.20%
Tax rate -% - 0.10% 0.05%
Cost of debt 4.30% - 7.00% 5.65%
WACC 5.1% - 7.0% 6.0%
WACC

8315.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.43 0.44
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 7.00%
Tax rate -% 0.10%
Debt/Equity ratio 0.36 0.36
Cost of debt 4.30% 7.00%
After-tax WACC 5.1% 7.0%
Selected WACC 6.0%

8315.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 8315.HK:

cost_of_equity (6.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.43) + 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.