2180.HK
ManpowerGroup Greater China Ltd
Price:  
5.50 
HKD
Volume:  
55,500.00
China | Professional Services
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2180.HK WACC - Weighted Average Cost of Capital

The WACC of ManpowerGroup Greater China Ltd (2180.HK) is 9.0%.

The Cost of Equity of ManpowerGroup Greater China Ltd (2180.HK) is 9.25%.
The Cost of Debt of ManpowerGroup Greater China Ltd (2180.HK) is 4.25%.

Range Selected
Cost of equity 8.10% - 10.40% 9.25%
Tax rate 21.50% - 22.20% 21.85%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.9% - 10.1% 9.0%
WACC

2180.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.87 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 10.40%
Tax rate 21.50% 22.20%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.00% 4.50%
After-tax WACC 7.9% 10.1%
Selected WACC 9.0%

2180.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 2180.HK:

cost_of_equity (9.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.87) + 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.