6193.HK
Tailam Tech Construction Holdings Ltd
Price:  
0.2 
HKD
Volume:  
6,000
China | Construction Materials

6193.HK WACC - Weighted Average Cost of Capital

The WACC of Tailam Tech Construction Holdings Ltd (6193.HK) is 9.6%.

The Cost of Equity of Tailam Tech Construction Holdings Ltd (6193.HK) is 9.65%.
The Cost of Debt of Tailam Tech Construction Holdings Ltd (6193.HK) is 5.5%.

RangeSelected
Cost of equity8.3% - 11.0%9.65%
Tax rate29.9% - 33.4%31.65%
Cost of debt4.0% - 7.0%5.5%
WACC8.3% - 11.0%9.6%
WACC

6193.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.91.02
Additional risk adjustments0.0%0.5%
Cost of equity8.3%11.0%
Tax rate29.9%33.4%
Debt/Equity ratio
00
Cost of debt4.0%7.0%
After-tax WACC8.3%11.0%
Selected WACC9.6%

6193.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 6193.HK:

cost_of_equity (9.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.9) + 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.