3848.HK
Wealthy Way Group Ltd
Price:  
11.58 
HKD
Volume:  
200,000
Hong Kong | Diversified Financial Services

3848.HK WACC - Weighted Average Cost of Capital

The WACC of Wealthy Way Group Ltd (3848.HK) is 6.1%.

The Cost of Equity of Wealthy Way Group Ltd (3848.HK) is 6.25%.
The Cost of Debt of Wealthy Way Group Ltd (3848.HK) is 5.9%.

RangeSelected
Cost of equity5.1% - 7.4%6.25%
Tax rate27.9% - 30.6%29.25%
Cost of debt5.3% - 6.5%5.9%
WACC5.0% - 7.1%6.1%
WACC

3848.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.370.51
Additional risk adjustments0.0%0.5%
Cost of equity5.1%7.4%
Tax rate27.9%30.6%
Debt/Equity ratio
0.10.1
Cost of debt5.3%6.5%
After-tax WACC5.0%7.1%
Selected WACC6.1%

3848.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 3848.HK:

cost_of_equity (6.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.37) + 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.