8495.HK WACC - Weighted Average Cost of Capital
The WACC of 1957 & Co (Hospitality) Ltd (8495.HK) is 6.8%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.7% | 7.45% |
| Tax rate | 16.3% - 19.4% | 17.85% |
| Cost of debt | 4.6% - 11.4% | 8% |
| WACC | 4.5% - 9.0% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.55 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.7% |
| Tax rate | 16.3% | 19.4% |
| Debt/Equity ratio | 2.52 | 2.52 |
| Cost of debt | 4.6% | 11.4% |
| After-tax WACC | 4.5% | 9.0% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8495.HK | 1957 & Co (Hospitality) Ltd | 2.52 | 0.36 | 0.12 |
| 1869.HK | Li Bao Ge Group Ltd | 0.48 | -0.01 | -0.01 |
| 8052.HK | Luk Hing Entertainment Group Holdings Ltd | 2 | 0.76 | 0.29 |
| 8056.HK | Life Concepts Holdings Ltd | 0.04 | 0.21 | 0.21 |
| 8213.HK | StarGlory Holdings Co Ltd | 0.7 | -0.18 | -0.12 |
| 8371.HK | Taste Gourmet Group Ltd | 0.79 | 0.4 | 0.24 |
| 8432.HK | Bar Pacific Group Holdings Ltd | 5.61 | 0.3 | 0.05 |
| 8447.HK | MS Concept Ltd | 2.47 | 0.48 | 0.16 |
| 8493.HK | Dragon King Group Holdings Ltd | 8.63 | 0.77 | 0.09 |
| 8519.HK | Jia Group Holdings Ltd | 0.15 | 0.67 | 0.6 |
| Low | High | |
| Unlevered beta | 0.11 | 0.18 |
| Relevered beta | 0.33 | 0.55 |
| Adjusted relevered beta | 0.55 | 0.7 |
8495.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 8495.HK:
cost_of_equity (7.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.55) + 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.