The WACC of Winox Holdings Ltd (6838.HK) is 5.6%.
Range | Selected | |
Cost of equity | 4.9% - 6.7% | 5.8% |
Tax rate | 10.5% - 11.0% | 10.75% |
Cost of debt | 4.3% - 7.0% | 5.65% |
WACC | 4.6% - 6.6% | 5.6% |
Category | Low | High |
Long-term bond rate | 2.9% | 3.4% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.34 | 0.41 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.9% | 6.7% |
Tax rate | 10.5% | 11.0% |
Debt/Equity ratio | 0.44 | 0.44 |
Cost of debt | 4.3% | 7.0% |
After-tax WACC | 4.6% | 6.6% |
Selected WACC | 5.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
6838.HK | Winox Holdings Ltd | 0.44 | 0.08 | 0.06 |
1100.HK | Mainland Headwear Holdings Ltd | 0.44 | -0.22 | -0.16 |
125.HK | Sun Hing Vision Group Holdings Ltd | 0.53 | 0.17 | 0.12 |
1388.HK | Embry Holdings Ltd | 2 | 0.44 | 0.16 |
1520.HK | CEFC Hong Kong Financial Investment Company Ltd | 0.05 | -0.67 | -0.64 |
1825.HK | Sterling Group Holdings Ltd | 6.46 | 0.08 | 0.01 |
1856.HK | Ernest Borel Holdings Ltd | 0.99 | -0.13 | -0.07 |
213.HK | National Electronics Holdings Ltd | 14.78 | 0.21 | 0.02 |
3326.HK | Perfect Group International Holdings Ltd | 0.13 | 0.44 | 0.4 |
333.HK | Top Form International Ltd | 1.34 | 0.5 | 0.23 |
Low | High | |
Unlevered beta | 0.01 | 0.08 |
Relevered beta | 0.01 | 0.12 |
Adjusted relevered beta | 0.34 | 0.41 |
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 6838.HK:
cost_of_equity (5.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.