183.HK WACC - Weighted Average Cost of Capital

The WACC of Winfull Group Holdings Ltd (183.HK) is 8.8%.

The Cost of Equity of Winfull Group Holdings Ltd (183.HK) is 7.55%.

The Cost of Debt of Winfull Group Holdings Ltd (183.HK) is 9.30%.

	Range	Selected
Cost of equity	5.50% - 9.60%	7.55%
Tax rate	0.80% - 1.60%	1.20%
Cost of debt	4.00% - 14.60%	9.30%
WACC	4.3% - 13.3%	8.8%

WACC

183.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.44	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	9.60%

Tax rate	0.80%	1.60%
Debt/Equity ratio	3.44	3.44
Cost of debt	4.00%	14.60%

After-tax WACC	4.3%	13.3%


Selected WACC	8.8%

183.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 183.HK:

cost_of_equity (7.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.44) + 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.