910.HK WACC - Weighted Average Cost of Capital
The WACC of China Sandi Holdings Ltd (910.HK) is 8.9%.
| Range | Selected | |
| Cost of equity | 8.3% - 22.2% | 15.25% |
| Tax rate | 36.2% - 40.6% | 38.4% |
| Cost of debt | 6.5% - 22.9% | 14.7% |
| WACC | 4.2% - 13.7% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.91 | 2.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 22.2% |
| Tax rate | 36.2% | 40.6% |
| Debt/Equity ratio | 107.14 | 107.14 |
| Cost of debt | 6.5% | 22.9% |
| After-tax WACC | 4.2% | 13.7% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 910.HK | China Sandi Holdings Ltd | 107.14 | 2.5 | 0.04 |
| 105.HK | Associated International Hotels Ltd | 0.11 | 0.14 | 0.13 |
| 194.HK | Liu Chong Hing Investment Ltd | 2.16 | 0.21 | 0.09 |
| 202.HK | EverChina Intl Holdings Co Ltd | 0.54 | -0.1 | -0.08 |
| 225.HK | Pokfulam Development Co Ltd | 0.67 | 0.08 | 0.05 |
| 2340.HK | Synergis Holdings Ltd | 0.02 | 0.67 | 0.66 |
| 251.HK | S E A Holdings Ltd | 10.5 | 0.08 | 0.01 |
| 266.HK | Tian Teck Land Ltd | 0.21 | 0.02 | 0.01 |
| 583.HK | Great Wall Pan Asia Holdings Ltd | 14.03 | 0.01 | 0 |
| 75.HK | YT Realty Group Ltd | 42.62 | 1.32 | 0.05 |
| 925.HK | Beijing Properties (Holdings) Ltd | 30.54 | -0.23 | -0.01 |
| Low | High | |
| Unlevered beta | 0.01 | 0.05 |
| Relevered beta | 0.87 | 3.42 |
| Adjusted relevered beta | 0.91 | 2.62 |
910.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 910.HK:
cost_of_equity (15.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.91) + 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.