1942.HK WACC - Weighted Average Cost of Capital

The WACC of MOG Holdings Ltd (1942.HK) is 8.8%.

The Cost of Equity of MOG Holdings Ltd (1942.HK) is 10.30%.

The Cost of Debt of MOG Holdings Ltd (1942.HK) is 6.85%.

	Range	Selected
Cost of equity	9.10% - 11.50%	10.30%
Tax rate	7.10% - 15.80%	11.45%
Cost of debt	6.70% - 7.00%	6.85%
WACC	8.1% - 9.5%	8.8%

WACC

1942.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.04	1.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	11.50%

Tax rate	7.10%	15.80%
Debt/Equity ratio	0.56	0.56
Cost of debt	6.70%	7.00%

After-tax WACC	8.1%	9.5%


Selected WACC	8.8%

1942.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 1942.HK:

cost_of_equity (10.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.04) + 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.