9978.HK WACC - Weighted Average Cost of Capital
The WACC of Fineland Real Estate Services Group Ltd (9978.HK) is 7.3%.
| Range | Selected | |
| Cost of equity | 5.5% - 9.2% | 7.35% |
| Tax rate | 9.3% - 12.9% | 11.1% |
| Cost of debt | 7.0% - 10.1% | 8.55% |
| WACC | 5.5% - 9.2% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.44 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 9.2% |
| Tax rate | 9.3% | 12.9% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 7.0% | 10.1% |
| After-tax WACC | 5.5% | 9.2% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9978.HK | Fineland Real Estate Services Group Ltd | 0.03 | 1.2 | 1.16 |
| 002377.SZ | Hubei Guochuang Hi-tech Material Co Ltd | 0.18 | 1.3 | 1.12 |
| 1778.HK | Colour Life Services Group Co Ltd | 0.1 | 1.75 | 1.6 |
| 183.HK | Winfull Group Holdings Ltd | 1.72 | 0.1 | 0.04 |
| 352.HK | Fortune Sun China Holdings Ltd | 1.97 | 0.67 | 0.25 |
| 603506.SS | Nacity Property Service Group Co Ltd | 0.02 | 1.14 | 1.12 |
| 733.HK | Hopefluent Group Holdings Ltd | 0.76 | 0.48 | 0.29 |
| 8067.HK | Oriental University City Holdings HK Ltd | 6.54 | 0.19 | 0.03 |
| 8945.T | Sunnexta Group Inc | 0 | -0.01 | -0.01 |
| AU1.AX | Agency Group Australia Ltd | 1.32 | -0.04 | -0.02 |
| Low | High | |
| Unlevered beta | 0.16 | 0.62 |
| Relevered beta | 0.16 | 0.64 |
| Adjusted relevered beta | 0.44 | 0.76 |
9978.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 9978.HK:
cost_of_equity (7.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.44) + 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.