6838.HK
Winox Holdings Ltd
Price:  
0.27 
HKD
Volume:  
468,000
Hong Kong | Textiles, Apparel & Luxury Goods

6838.HK WACC - Weighted Average Cost of Capital

The WACC of Winox Holdings Ltd (6838.HK) is 5.6%.

The Cost of Equity of Winox Holdings Ltd (6838.HK) is 5.8%.
The Cost of Debt of Winox Holdings Ltd (6838.HK) is 5.65%.

RangeSelected
Cost of equity4.9% - 6.7%5.8%
Tax rate10.5% - 11.0%10.75%
Cost of debt4.3% - 7.0%5.65%
WACC4.6% - 6.6%5.6%
WACC

6838.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.340.41
Additional risk adjustments0.0%0.5%
Cost of equity4.9%6.7%
Tax rate10.5%11.0%
Debt/Equity ratio
0.440.44
Cost of debt4.3%7.0%
After-tax WACC4.6%6.6%
Selected WACC5.6%

6838.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 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.