8219.HK WACC - Weighted Average Cost of Capital

The WACC of Hanvey Group Holdings Ltd (8219.HK) is 7.2%.

The Cost of Equity of Hanvey Group Holdings Ltd (8219.HK) is 10.30%.

The Cost of Debt of Hanvey Group Holdings Ltd (8219.HK) is 5.85%.

	Range	Selected
Cost of equity	8.50% - 12.10%	10.30%
Tax rate	2.60% - 4.60%	3.60%
Cost of debt	4.70% - 7.00%	5.85%
WACC	5.9% - 8.5%	7.2%

WACC

8219.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.94	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	12.10%

Tax rate	2.60%	4.60%
Debt/Equity ratio	2.05	2.05
Cost of debt	4.70%	7.00%

After-tax WACC	5.9%	8.5%


Selected WACC	7.2%

8219.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 8219.HK:

cost_of_equity (10.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.94) + 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.