1813.HK WACC - Weighted Average Cost of Capital

The WACC of KWG Group Holdings Ltd (1813.HK) is 8.1%.

The Cost of Equity of KWG Group Holdings Ltd (1813.HK) is 126.85%.

The Cost of Debt of KWG Group Holdings Ltd (1813.HK) is 8.20%.

	Range	Selected
Cost of equity	77.60% - 176.10%	126.85%
Tax rate	7.90% - 12.30%	10.10%
Cost of debt	5.00% - 11.40%	8.20%
WACC	5.1% - 11.1%	8.1%

WACC

1813.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	12.5	24.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	77.60%	176.10%

Tax rate	7.90%	12.30%
Debt/Equity ratio	149.17	149.17
Cost of debt	5.00%	11.40%

After-tax WACC	5.1%	11.1%


Selected WACC	8.1%

1813.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 1813.HK:

cost_of_equity (126.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (12.5) + 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.