6893.HK WACC - Weighted Average Cost of Capital

The WACC of Hin Sang Group (International) Holding Co Ltd (6893.HK) is 5.7%.

The Cost of Equity of Hin Sang Group (International) Holding Co Ltd (6893.HK) is 6.10%.

The Cost of Debt of Hin Sang Group (International) Holding Co Ltd (6893.HK) is 5.75%.

	Range	Selected
Cost of equity	5.20% - 7.00%	6.10%
Tax rate	0.80% - 5.70%	3.25%
Cost of debt	4.50% - 7.00%	5.75%
WACC	4.7% - 6.7%	5.7%

WACC

6893.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.39	0.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	7.00%

Tax rate	0.80%	5.70%
Debt/Equity ratio	1.63	1.63
Cost of debt	4.50%	7.00%

After-tax WACC	4.7%	6.7%


Selected WACC	5.7%

6893.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 6893.HK:

cost_of_equity (6.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.