6093.HK WACC - Weighted Average Cost of Capital

The WACC of Hevol Services Group Co Ltd (6093.HK) is 8.3%.

The Cost of Equity of Hevol Services Group Co Ltd (6093.HK) is 9.05%.

The Cost of Debt of Hevol Services Group Co Ltd (6093.HK) is 4.25%.

	Range	Selected
Cost of equity	7.40% - 10.70%	9.05%
Tax rate	19.80% - 19.90%	19.85%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.9% - 9.8%	8.3%

WACC

6093.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.76	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.40%	10.70%

Tax rate	19.80%	19.90%
Debt/Equity ratio	0.14	0.14
Cost of debt	4.00%	4.50%

After-tax WACC	6.9%	9.8%


Selected WACC	8.3%

6093.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 6093.HK:

cost_of_equity (9.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.76) + 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.