8285.HK WACC - Weighted Average Cost of Capital

The WACC of Sling Group Holdings Ltd (8285.HK) is 5.6%.

The Cost of Equity of Sling Group Holdings Ltd (8285.HK) is 5.60%.

The Cost of Debt of Sling Group Holdings Ltd (8285.HK) is 6.05%.

	Range	Selected
Cost of equity	3.40% - 7.80%	5.60%
Tax rate	5.10% - 7.90%	6.50%
Cost of debt	4.00% - 8.10%	6.05%
WACC	3.6% - 7.6%	5.6%

WACC

8285.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	-0.17	0.35

Additional risk adjustments	1.5%	2.0%
Cost of equity	3.40%	7.80%

Tax rate	5.10%	7.90%
Debt/Equity ratio	1.6	1.6
Cost of debt	4.00%	8.10%

After-tax WACC	3.6%	7.6%


Selected WACC	5.6%

8285.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 8285.HK:

cost_of_equity (5.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (-0.17) + risk_adjustments (1.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.