592.HK WACC - Weighted Average Cost of Capital

The WACC of Bossini International Holdings Ltd (592.HK) is 5.9%.

The Cost of Equity of Bossini International Holdings Ltd (592.HK) is 5.85%.

The Cost of Debt of Bossini International Holdings Ltd (592.HK) is 6.15%.

	Range	Selected
Cost of equity	5.00% - 6.70%	5.85%
Tax rate	0.50% - 0.80%	0.65%
Cost of debt	5.30% - 7.00%	6.15%
WACC	5.1% - 6.8%	5.9%

WACC

592.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.36	0.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.00%	6.70%

Tax rate	0.50%	0.80%
Debt/Equity ratio	0.49	0.49
Cost of debt	5.30%	7.00%

After-tax WACC	5.1%	6.8%


Selected WACC	5.9%

592.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 592.HK:

cost_of_equity (5.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.