6182.HK WACC - Weighted Average Cost of Capital

The WACC of Twintek Investment Holdings Ltd (6182.HK) is 7.8%.

The Cost of Equity of Twintek Investment Holdings Ltd (6182.HK) is 7.35%.

The Cost of Debt of Twintek Investment Holdings Ltd (6182.HK) is 10.05%.

	Range	Selected
Cost of equity	6.30% - 8.40%	7.35%
Tax rate	1.10% - 4.10%	2.60%
Cost of debt	5.50% - 14.60%	10.05%
WACC	6.2% - 9.4%	7.8%

WACC

6182.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.58	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.40%

Tax rate	1.10%	4.10%
Debt/Equity ratio	0.22	0.22
Cost of debt	5.50%	14.60%

After-tax WACC	6.2%	9.4%


Selected WACC	7.8%

6182.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 6182.HK:

cost_of_equity (7.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.58) + 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.