95.HK
LVGEM (China) Real Estate Investment Co Ltd
Price:  
0.23 
HKD
Volume:  
4,104,000
Hong Kong | Real Estate Management & Development

95.HK WACC - Weighted Average Cost of Capital

The WACC of LVGEM (China) Real Estate Investment Co Ltd (95.HK) is 5.4%.

The Cost of Equity of LVGEM (China) Real Estate Investment Co Ltd (95.HK) is 7.2%.
The Cost of Debt of LVGEM (China) Real Estate Investment Co Ltd (95.HK) is 7%.

RangeSelected
Cost of equity6.2% - 8.2%7.2%
Tax rate18.3% - 30.2%24.25%
Cost of debt7.0% - 7.0%7%
WACC5.7% - 5.0%5.4%
WACC

95.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.550.62
Additional risk adjustments0.0%0.5%
Cost of equity6.2%8.2%
Tax rate18.3%30.2%
Debt/Equity ratio
26.5426.54
Cost of debt7.0%7.0%
After-tax WACC5.7%5.0%
Selected WACC5.4%

95.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 95.HK:

cost_of_equity (7.20%) = 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.