1128.HK WACC - Weighted Average Cost of Capital

The WACC of Wynn Macau Ltd (1128.HK) is 9.1%.

The Cost of Equity of Wynn Macau Ltd (1128.HK) is 40.20%.

The Cost of Debt of Wynn Macau Ltd (1128.HK) is 6.70%.

	Range	Selected
Cost of equity	29.90% - 50.50%	40.20%
Tax rate	1.10% - 2.20%	1.65%
Cost of debt	5.30% - 8.10%	6.70%
WACC	7.1% - 11.1%	9.1%

WACC

1128.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	4.53	6.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	29.90%	50.50%

Tax rate	1.10%	2.20%
Debt/Equity ratio	12.49	12.49
Cost of debt	5.30%	8.10%

After-tax WACC	7.1%	11.1%


Selected WACC	9.1%

1128.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 1128.HK:

cost_of_equity (40.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (4.53) + 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.