643.HK
Carry Wealth Holdings Ltd
Price:  
0.27 
HKD
Volume:  
690,000.00
Hong Kong | Textiles, Apparel & Luxury Goods
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643.HK WACC - Weighted Average Cost of Capital

The WACC of Carry Wealth Holdings Ltd (643.HK) is 7.4%.

The Cost of Equity of Carry Wealth Holdings Ltd (643.HK) is 7.40%.
The Cost of Debt of Carry Wealth Holdings Ltd (643.HK) is 12.25%.

Range Selected
Cost of equity 6.40% - 8.40% 7.40%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 7.00% - 17.50% 12.25%
WACC 6.3% - 8.5% 7.4%
WACC

643.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 0.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 8.40%
Tax rate 22.10% 22.30%
Debt/Equity ratio 0.01 0.01
Cost of debt 7.00% 17.50%
After-tax WACC 6.3% 8.5%
Selected WACC 7.4%

643.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 643.HK:

cost_of_equity (7.40%) = 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.