2292.HK
Thing On Enterprise Ltd
Price:  
0.72 
HKD
Volume:  
4,000
Hong Kong | Real Estate Management & Development

2292.HK WACC - Weighted Average Cost of Capital

The WACC of Thing On Enterprise Ltd (2292.HK) is 5.6%.

The Cost of Equity of Thing On Enterprise Ltd (2292.HK) is 6.45%.
The Cost of Debt of Thing On Enterprise Ltd (2292.HK) is 5%.

RangeSelected
Cost of equity5.3% - 7.6%6.45%
Tax rate4.7% - 6.6%5.65%
Cost of debt5.0% - 5.0%5%
WACC5.0% - 6.1%5.6%
WACC

2292.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.40.54
Additional risk adjustments0.0%0.5%
Cost of equity5.3%7.6%
Tax rate4.7%6.6%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC5.0%6.1%
Selected WACC5.6%

2292.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 2292.HK:

cost_of_equity (6.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.4) + 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.