6860.HK WACC - Weighted Average Cost of Capital

The WACC of FingerTango Inc (6860.HK) is 11.1%.

The Cost of Equity of FingerTango Inc (6860.HK) is 11.60%.

The Cost of Debt of FingerTango Inc (6860.HK) is 4.90%.

	Range	Selected
Cost of equity	9.60% - 13.60%	11.60%
Tax rate	11.90% - 14.60%	13.25%
Cost of debt	4.00% - 5.80%	4.90%
WACC	9.2% - 13.1%	11.1%

WACC

6860.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.12	1.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	13.60%

Tax rate	11.90%	14.60%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.00%	5.80%

After-tax WACC	9.2%	13.1%


Selected WACC	11.1%

6860.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 6860.HK:

cost_of_equity (11.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.12) + 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.