321.HK WACC - Weighted Average Cost of Capital

The WACC of Texwinca Holdings Ltd (321.HK) is 6.4%.

The Cost of Equity of Texwinca Holdings Ltd (321.HK) is 7.15%.

The Cost of Debt of Texwinca Holdings Ltd (321.HK) is 6.10%.

	Range	Selected
Cost of equity	5.30% - 9.00%	7.15%
Tax rate	10.90% - 15.30%	13.10%
Cost of debt	4.10% - 8.10%	6.10%
WACC	4.7% - 8.1%	6.4%

WACC

321.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.41	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	9.00%

Tax rate	10.90%	15.30%
Debt/Equity ratio	0.71	0.71
Cost of debt	4.10%	8.10%

After-tax WACC	4.7%	8.1%


Selected WACC	6.4%

321.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 321.HK:

cost_of_equity (7.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.41) + 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.