6083.HK WACC - Weighted Average Cost of Capital

The WACC of World-Link Logistics (Asia) Holding Ltd (6083.HK) is 7.4%.

The Cost of Equity of World-Link Logistics (Asia) Holding Ltd (6083.HK) is 8.90%.

The Cost of Debt of World-Link Logistics (Asia) Holding Ltd (6083.HK) is 4.25%.

	Range	Selected
Cost of equity	5.90% - 11.90%	8.90%
Tax rate	13.00% - 14.80%	13.90%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.2% - 9.6%	7.4%

WACC

6083.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.51	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	11.90%

Tax rate	13.00%	14.80%
Debt/Equity ratio	0.39	0.39
Cost of debt	4.00%	4.50%

After-tax WACC	5.2%	9.6%


Selected WACC	7.4%

6083.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 6083.HK:

cost_of_equity (8.90%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.51) + 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.