8292.HK WACC - Weighted Average Cost of Capital

The WACC of Worldgate Global Logistics Ltd (8292.HK) is 7.1%.

The Cost of Equity of Worldgate Global Logistics Ltd (8292.HK) is 7.15%.

The Cost of Debt of Worldgate Global Logistics Ltd (8292.HK) is 6.45%.

	Range	Selected
Cost of equity	5.80% - 8.50%	7.15%
Tax rate	0.70% - 1.70%	1.20%
Cost of debt	5.90% - 7.00%	6.45%
WACC	5.8% - 8.4%	7.1%

WACC

8292.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.48	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	8.50%

Tax rate	0.70%	1.70%
Debt/Equity ratio	0.03	0.03
Cost of debt	5.90%	7.00%

After-tax WACC	5.8%	8.4%


Selected WACC	7.1%

8292.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 8292.HK:

cost_of_equity (7.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.48) + 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.