9928.HK WACC - Weighted Average Cost of Capital
The WACC of Times Neighborhood Holdings Ltd (9928.HK) is 8.6%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.4% | 8.75% |
| Tax rate | 22.7% - 24.9% | 23.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.0% - 10.2% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.71 | 0.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.4% |
| Tax rate | 22.7% | 24.9% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.0% | 10.2% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9928.HK | Times Neighborhood Holdings Ltd | 0.02 | 0.51 | 0.51 |
| 000544.SZ | Central Plains Environment Protection Co Ltd | 2.84 | 1 | 0.32 |
| 1153.HK | Jiayuan Services Holdings Ltd | 0.08 | 0.28 | 0.27 |
| 1941.HK | Ye Xing Group Holdings Ltd | 0 | 0.4 | 0.4 |
| 300664.SZ | Penyao Environmental Protection Co Ltd | 0.42 | 1.13 | 0.86 |
| 3319.HK | A Living Smart City Services Co Ltd | 0.14 | 1.7 | 1.54 |
| 603126.SS | Sinoma Energy Conservation Ltd | 0.26 | 0.7 | 0.58 |
| 603359.SS | Dongzhu Ecological Environment Protection Co Ltd | 0.19 | 1.07 | 0.94 |
| 6098.HK | Country Garden Services Holdings Co Ltd | 0.14 | 1.41 | 1.28 |
| 6677.HK | Sino-Ocean Service Holding Ltd | 0.01 | 1.43 | 1.42 |
| Low | High | |
| Unlevered beta | 0.55 | 0.89 |
| Relevered beta | 0.57 | 0.9 |
| Adjusted relevered beta | 0.71 | 0.93 |
9928.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 9928.HK:
cost_of_equity (8.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.71) + 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.