3919.HK WACC - Weighted Average Cost of Capital

The WACC of Golden Power Group Holdings Ltd (3919.HK) is 10.0%.

The Cost of Equity of Golden Power Group Holdings Ltd (3919.HK) is 12.40%.

The Cost of Debt of Golden Power Group Holdings Ltd (3919.HK) is 12.30%.

	Range	Selected
Cost of equity	10.10% - 14.70%	12.40%
Tax rate	18.30% - 23.80%	21.05%
Cost of debt	4.70% - 19.90%	12.30%
WACC	5.0% - 15.1%	10.0%

WACC

3919.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.21	1.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	14.70%

Tax rate	18.30%	23.80%
Debt/Equity ratio	4.46	4.46
Cost of debt	4.70%	19.90%

After-tax WACC	5.0%	15.1%


Selected WACC	10.0%

3919.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 3919.HK:

cost_of_equity (12.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.21) + 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.