1910.HK WACC - Weighted Average Cost of Capital

The WACC of Samsonite International SA (1910.HK) is 8.1%.

The Cost of Equity of Samsonite International SA (1910.HK) is 12.20%.

The Cost of Debt of Samsonite International SA (1910.HK) is 4.25%.

	Range	Selected
Cost of equity	10.80% - 13.60%	12.20%
Tax rate	17.00% - 23.90%	20.45%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.3% - 8.8%	8.1%

WACC

1910.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.33	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	13.60%

Tax rate	17.00%	23.90%
Debt/Equity ratio	0.89	0.89
Cost of debt	4.00%	4.50%

After-tax WACC	7.3%	8.8%


Selected WACC	8.1%

1910.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 1910.HK:

cost_of_equity (12.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.33) + 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.