1128.HK WACC - Weighted Average Cost of Capital

The WACC of Wynn Macau Ltd (1128.HK) is 9.9%.

The Cost of Equity of Wynn Macau Ltd (1128.HK) is 49.75%.

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

	Range	Selected
Cost of equity	40.80% - 58.70%	49.75%
Tax rate	0.20% - 0.80%	0.50%
Cost of debt	5.30% - 8.10%	6.70%
WACC	8.0% - 11.8%	9.9%

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	6.34	7.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	40.80%	58.70%

Tax rate	0.20%	0.80%
Debt/Equity ratio	12.39	12.39
Cost of debt	5.30%	8.10%

After-tax WACC	8.0%	11.8%


Selected WACC	9.9%

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 (49.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (6.34) + 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.