SFUN
Fang Holdings Ltd
Price:  
2.8 
USD
Volume:  
2,472
China | Interactive Media & Services

SFUN WACC - Weighted Average Cost of Capital

The WACC of Fang Holdings Ltd (SFUN) is 5.3%.

The Cost of Equity of Fang Holdings Ltd (SFUN) is 70.1%.
The Cost of Debt of Fang Holdings Ltd (SFUN) is 4.25%.

RangeSelected
Cost of equity59.8% - 80.4%70.1%
Tax rate24.2% - 33.6%28.9%
Cost of debt4.0% - 4.5%4.25%
WACC4.9% - 5.6%5.3%
WACC

SFUN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium4.2%5.2%
Adjusted beta13.3514.55
Additional risk adjustments0.0%0.5%
Cost of equity59.8%80.4%
Tax rate24.2%33.6%
Debt/Equity ratio
28.8928.89
Cost of debt4.0%4.5%
After-tax WACC4.9%5.6%
Selected WACC5.3%

SFUN'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 SFUN:

cost_of_equity (70.10%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (13.35) + 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.