2199.HK WACC - Weighted Average Cost of Capital

The WACC of Regina Miracle International (Holdings) Ltd (2199.HK) is 6.5%.

The Cost of Equity of Regina Miracle International (Holdings) Ltd (2199.HK) is 8.10%.

The Cost of Debt of Regina Miracle International (Holdings) Ltd (2199.HK) is 6.70%.

	Range	Selected
Cost of equity	6.20% - 10.00%	8.10%
Tax rate	11.60% - 14.90%	13.25%
Cost of debt	5.30% - 8.10%	6.70%
WACC	5.1% - 7.9%	6.5%

WACC

2199.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.55	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	10.00%

Tax rate	11.60%	14.90%
Debt/Equity ratio	2.12	2.12
Cost of debt	5.30%	8.10%

After-tax WACC	5.1%	7.9%


Selected WACC	6.5%

2199.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 2199.HK:

cost_of_equity (8.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.55) + 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.