6182.HK WACC - Weighted Average Cost of Capital

The WACC of Twintek Investment Holdings Ltd (6182.HK) is 6.7%.

The Cost of Equity of Twintek Investment Holdings Ltd (6182.HK) is 6.75%.

The Cost of Debt of Twintek Investment Holdings Ltd (6182.HK) is 6.25%.

	Range	Selected
Cost of equity	5.40% - 8.10%	6.75%
Tax rate	0.40% - 1.10%	0.75%
Cost of debt	5.50% - 7.00%	6.25%
WACC	5.4% - 7.9%	6.7%

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	0.35	0.54

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.40%	8.10%

Tax rate	0.40%	1.10%
Debt/Equity ratio	0.23	0.23
Cost of debt	5.50%	7.00%

After-tax WACC	5.4%	7.9%


Selected WACC	6.7%

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 (6.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.35) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.