3358.HK WACC - Weighted Average Cost of Capital

The WACC of Bestway Global Holding Inc (3358.HK) is 8.5%.

The Cost of Equity of Bestway Global Holding Inc (3358.HK) is 10.30%.

The Cost of Debt of Bestway Global Holding Inc (3358.HK) is 4.90%.

	Range	Selected
Cost of equity	9.00% - 11.60%	10.30%
Tax rate	20.90% - 21.20%	21.05%
Cost of debt	4.20% - 5.60%	4.90%
WACC	7.4% - 9.6%	8.5%

WACC

3358.HK WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.3%	6.3%
Adjusted beta	1.11	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.60%

Tax rate	20.90%	21.20%
Debt/Equity ratio	0.39	0.39
Cost of debt	4.20%	5.60%

After-tax WACC	7.4%	9.6%


Selected WACC	8.5%

3358.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 3358.HK:

cost_of_equity (10.30%) = risk_free_rate (3.25%) + equity_risk_premium (5.80%) * adjusted_beta (1.11) + 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.