677.HK WACC - Weighted Average Cost of Capital

The WACC of Golden Resources Development International Ltd (677.HK) is 5.4%.

The Cost of Equity of Golden Resources Development International Ltd (677.HK) is 6.15%.

The Cost of Debt of Golden Resources Development International Ltd (677.HK) is 7.95%.

	Range	Selected
Cost of equity	5.00% - 7.30%	6.15%
Tax rate	32.20% - 48.00%	40.10%
Cost of debt	4.50% - 11.40%	7.95%
WACC	4.1% - 6.7%	5.4%

WACC

677.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.36	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.00%	7.30%

Tax rate	32.20%	48.00%
Debt/Equity ratio	0.8	0.8
Cost of debt	4.50%	11.40%

After-tax WACC	4.1%	6.7%


Selected WACC	5.4%

677.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 677.HK:

cost_of_equity (6.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.