2528.HK
Forward Fashion (International) Holdings Co Ltd
Price:  
0.26 
HKD
Volume:  
70,000.00
Hong Kong | Specialty Retail
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2528.HK WACC - Weighted Average Cost of Capital

The WACC of Forward Fashion (International) Holdings Co Ltd (2528.HK) is 7.7%.

The Cost of Equity of Forward Fashion (International) Holdings Co Ltd (2528.HK) is 18.15%.
The Cost of Debt of Forward Fashion (International) Holdings Co Ltd (2528.HK) is 5.50%.

Range Selected
Cost of equity 11.20% - 25.10% 18.15%
Tax rate 5.60% - 7.00% 6.30%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.2% - 10.1% 7.7%
WACC

2528.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.39 3.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.20% 25.10%
Tax rate 5.60% 7.00%
Debt/Equity ratio 4.16 4.16
Cost of debt 4.00% 7.00%
After-tax WACC 5.2% 10.1%
Selected WACC 7.7%

2528.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 2528.HK:

cost_of_equity (18.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.39) + 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.