209.HK WACC - Weighted Average Cost of Capital

The WACC of Winshine Science Co Ltd (209.HK) is 7.7%.

The Cost of Equity of Winshine Science Co Ltd (209.HK) is 27.15%.

The Cost of Debt of Winshine Science Co Ltd (209.HK) is 6.45%.

	Range	Selected
Cost of equity	14.00% - 40.30%	27.15%
Tax rate	6.20% - 14.80%	10.50%
Cost of debt	5.90% - 7.00%	6.45%
WACC	6.3% - 9.1%	7.7%

WACC

209.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.87	5.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	40.30%

Tax rate	6.20%	14.80%
Debt/Equity ratio	9.78	9.78
Cost of debt	5.90%	7.00%

After-tax WACC	6.3%	9.1%


Selected WACC	7.7%

209.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 209.HK:

cost_of_equity (27.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.87) + 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.