1968.HK WACC - Weighted Average Cost of Capital
The WACC of Hingtex Holdings Ltd (1968.HK) is 8.2%.
| Range | Selected | |
| Cost of equity | 8.0% - 11.2% | 9.6% |
| Tax rate | 3.8% - 6.0% | 4.9% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.6% - 9.7% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.86 | 1.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 11.2% |
| Tax rate | 3.8% | 6.0% |
| Debt/Equity ratio | 0.49 | 0.49 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.6% | 9.7% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1968.HK | Hingtex Holdings Ltd | 0.49 | 0.36 | 0.24 |
| 002072.SZ | Kairuide Holding Co Ltd | 0 | 0.79 | 0.79 |
| 002144.SZ | Hongda High-Tech Holding Co Ltd | 0.03 | 1.12 | 1.09 |
| 1400.HK | Moody Technology Holdings Ltd | 1.88 | 0.95 | 0.34 |
| 300163.SZ | Ningbo Xianfeng New Material Co Ltd | 0 | 0.95 | 0.95 |
| 600156.SS | Hunan Huasheng Co Ltd | 0.08 | 0.74 | 0.69 |
| 600493.SS | Fujian Fynex Textile Science & Technology Co Ltd | 0.19 | 1.05 | 0.89 |
| 8211.HK | Zhejiang Yongan Rongtong Holdings Co Ltd | 1.95 | 1.92 | 0.67 |
| 8607.HK | Narnia (Hong Kong) Group Co Ltd | 1.82 | 0.38 | 0.14 |
| AWK.SI | Fuxing China Group Ltd | 11.45 | -0.61 | -0.05 |
| Low | High | |
| Unlevered beta | 0.54 | 0.73 |
| Relevered beta | 0.79 | 1.07 |
| Adjusted relevered beta | 0.86 | 1.05 |
1968.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 1968.HK:
cost_of_equity (9.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.86) + 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.