8285.HK
Sling Group Holdings Ltd
Price:  
0.02 
HKD
Volume:  
60,000.00
Hong Kong | Textiles, Apparel & Luxury Goods
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8285.HK WACC - Weighted Average Cost of Capital

The WACC of Sling Group Holdings Ltd (8285.HK) is 6.1%.

The Cost of Equity of Sling Group Holdings Ltd (8285.HK) is 7.95%.
The Cost of Debt of Sling Group Holdings Ltd (8285.HK) is 5.50%.

Range Selected
Cost of equity 5.40% - 10.50% 7.95%
Tax rate 2.00% - 4.80% 3.40%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.4% - 7.8% 6.1%
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 0.42 0.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 10.50%
Tax rate 2.00% 4.80%
Debt/Equity ratio 2.24 2.24
Cost of debt 4.00% 7.00%
After-tax WACC 4.4% 7.8%
Selected WACC 6.1%

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 (7.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.