2180.HK WACC - Weighted Average Cost of Capital
The WACC of ManpowerGroup Greater China Ltd (2180.HK) is 8.8%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.1% | 9% |
| Tax rate | 21.5% - 22.2% | 21.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.7% - 9.9% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.84 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.1% |
| Tax rate | 21.5% | 22.2% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.7% | 9.9% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2180.HK | ManpowerGroup Greater China Ltd | 0.04 | 0.25 | 0.24 |
| 002663.SZ | Pubang Landscape Architecture Co Ltd | 0.08 | 1.8 | 1.69 |
| 2462.T | LIKE Inc | 0.41 | 0.51 | 0.39 |
| 2475.T | WDB Holdings Co Ltd | 1.01 | 0.75 | 0.42 |
| 4318.T | Quick Co Ltd | 0 | 0.95 | 0.95 |
| 4433.T | HITO-Communications Holdings Inc | 0.53 | 0.47 | 0.33 |
| 4641.T | Altech Corp | 0 | 0.81 | 0.81 |
| 6569.T | Nisso Corp | 0.1 | 1.27 | 1.18 |
| 7088.T | Forum Engineering Inc | 0 | 0.84 | 0.83 |
| 7781.T | Hirayama Holdings Co Ltd | 0.2 | 0.85 | 0.74 |
| Low | High | |
| Unlevered beta | 0.61 | 0.82 |
| Relevered beta | 0.76 | 0.84 |
| Adjusted relevered beta | 0.84 | 0.89 |
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 (9.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.84) + 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.