6811.HK WACC - Weighted Average Cost of Capital
The WACC of Tai Hing Group Holdings Ltd (6811.HK) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.1% | 6.95% |
| Tax rate | 12.6% - 19.4% | 16% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 5.9% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.49 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.1% |
| Tax rate | 12.6% | 19.4% |
| Debt/Equity ratio | 1.2 | 1.2 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 5.9% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6811.HK | Tai Hing Group Holdings Ltd | 1.2 | 0.13 | 0.06 |
| 1181.HK | Tang Palace (China) Holdings Ltd | 1.25 | 0.77 | 0.39 |
| 1314.HK | Tsui Wah Holdings Ltd | 1.96 | 0.56 | 0.22 |
| 1443.HK | Fulum Group Holdings Ltd | 9.8 | -0.22 | -0.02 |
| 1488.HK | Best Food Holding Company Ltd | 0.51 | 0.38 | 0.27 |
| 47.HK | Hop Hing Group Holdings Ltd | 1.1 | 0.22 | 0.12 |
| 52.HK | Fairwood Holdings Ltd | 1.58 | 0.29 | 0.13 |
| 538.HK | Ajisen (China) Holdings Ltd | 0.78 | 0.49 | 0.3 |
| 573.HK | Tao Heung Holdings Ltd | 1.33 | 0.42 | 0.2 |
| 703.HK | Future Bright Holdings Ltd | 4.89 | 0.34 | 0.07 |
| Low | High | |
| Unlevered beta | 0.12 | 0.21 |
| Relevered beta | 0.24 | 0.4 |
| Adjusted relevered beta | 0.49 | 0.6 |
6811.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 6811.HK:
cost_of_equity (6.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.49) + 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.