929.HK WACC - Weighted Average Cost of Capital

The WACC of IPE Group Ltd (929.HK) is 5.8%.

The Cost of Equity of IPE Group Ltd (929.HK) is 6.35%.

The Cost of Debt of IPE Group Ltd (929.HK) is 6.20%.

	Range	Selected
Cost of equity	5.40% - 7.30%	6.35%
Tax rate	24.60% - 27.90%	26.25%
Cost of debt	4.30% - 8.10%	6.20%
WACC	4.8% - 6.9%	5.8%

WACC

929.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.42	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	7.30%

Tax rate	24.60%	27.90%
Debt/Equity ratio	0.38	0.38
Cost of debt	4.30%	8.10%

After-tax WACC	4.8%	6.9%


Selected WACC	5.8%

929.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 929.HK:

cost_of_equity (6.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.