1140.HK WACC - Weighted Average Cost of Capital

The WACC of Wealthking Investments Ltd (1140.HK) is 8.1%.

The Cost of Equity of Wealthking Investments Ltd (1140.HK) is 14.90%.

The Cost of Debt of Wealthking Investments Ltd (1140.HK) is 4.25%.

	Range	Selected
Cost of equity	9.90% - 19.90%	14.90%
Tax rate	1.50% - 1.80%	1.65%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.1% - 10.0%	8.1%

WACC

1140.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.18	2.3

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	19.90%

Tax rate	1.50%	1.80%
Debt/Equity ratio	1.76	1.76
Cost of debt	4.00%	4.50%

After-tax WACC	6.1%	10.0%


Selected WACC	8.1%

1140.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 1140.HK:

cost_of_equity (14.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.18) + 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.