9900.HK
Gain Plus Holdings Ltd
Price:  
11.7 
HKD
Volume:  
36,000
Hong Kong | Construction & Engineering

9900.HK WACC - Weighted Average Cost of Capital

The WACC of Gain Plus Holdings Ltd (9900.HK) is 5.7%.

The Cost of Equity of Gain Plus Holdings Ltd (9900.HK) is 5.65%.
The Cost of Debt of Gain Plus Holdings Ltd (9900.HK) is 4.25%.

RangeSelected
Cost of equity4.8% - 6.5%5.65%
Tax rate14.2% - 15.0%14.6%
Cost of debt4.0% - 4.5%4.25%
WACC4.8% - 6.5%5.7%
WACC

9900.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.330.37
Additional risk adjustments0.0%0.5%
Cost of equity4.8%6.5%
Tax rate14.2%15.0%
Debt/Equity ratio
00
Cost of debt4.0%4.5%
After-tax WACC4.8%6.5%
Selected WACC5.7%

9900.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 9900.HK:

cost_of_equity (5.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + 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.