89.HK
Tai Sang Land Development Ltd
Price:  
1.79 
HKD
Volume:  
1,000.00
Hong Kong | Real Estate Management & Development
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89.HK WACC - Weighted Average Cost of Capital

The WACC of Tai Sang Land Development Ltd (89.HK) is 10.1%.

The Cost of Equity of Tai Sang Land Development Ltd (89.HK) is 6.20%.
The Cost of Debt of Tai Sang Land Development Ltd (89.HK) is 11.95%.

Range Selected
Cost of equity 4.90% - 7.50% 6.20%
Tax rate 5.00% - 9.70% 7.35%
Cost of debt 4.00% - 19.90% 11.95%
WACC 4.0% - 16.3% 10.1%
WACC

89.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.34 0.52
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.90% 7.50%
Tax rate 5.00% 9.70%
Debt/Equity ratio 5.29 5.29
Cost of debt 4.00% 19.90%
After-tax WACC 4.0% 16.3%
Selected WACC 10.1%

89.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 89.HK:

cost_of_equity (6.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.