6133.HK WACC - Weighted Average Cost of Capital

The WACC of Vital Innovations Holdings Ltd (6133.HK) is 8.3%.

The Cost of Equity of Vital Innovations Holdings Ltd (6133.HK) is 8.75%.

The Cost of Debt of Vital Innovations Holdings Ltd (6133.HK) is 6.85%.

	Range	Selected
Cost of equity	5.90% - 11.60%	8.75%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	6.70% - 7.00%	6.85%
WACC	5.8% - 10.8%	8.3%

WACC

6133.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	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	11.60%

Tax rate	22.10%	22.30%
Debt/Equity ratio	0.14	0.14
Cost of debt	6.70%	7.00%

After-tax WACC	5.8%	10.8%


Selected WACC	8.3%

6133.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 6133.HK:

cost_of_equity (8.75%) = 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.