1746.HK
Man Shun Group (Holdings) Ltd
Price:  
0.37 
HKD
Volume:  
184,000.00
Hong Kong | Construction & Engineering
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

1746.HK WACC - Weighted Average Cost of Capital

The WACC of Man Shun Group (Holdings) Ltd (1746.HK) is 6.4%.

The Cost of Equity of Man Shun Group (Holdings) Ltd (1746.HK) is 6.35%.
The Cost of Debt of Man Shun Group (Holdings) Ltd (1746.HK) is 5.55%.

Range Selected
Cost of equity 5.00% - 7.70% 6.35%
Tax rate 1.30% - 2.30% 1.80%
Cost of debt 4.10% - 7.00% 5.55%
WACC 5.0% - 7.7% 6.4%
WACC

1746.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 0.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.00% 7.70%
Tax rate 1.30% 2.30%
Debt/Equity ratio 0 0
Cost of debt 4.10% 7.00%
After-tax WACC 5.0% 7.7%
Selected WACC 6.4%

1746.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 1746.HK:

cost_of_equity (6.35%) = 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.