8309.HK WACC - Weighted Average Cost of Capital

The WACC of Man Shing Global Holdings Ltd (8309.HK) is 7.6%.

The Cost of Equity of Man Shing Global Holdings Ltd (8309.HK) is 10.25%.

The Cost of Debt of Man Shing Global Holdings Ltd (8309.HK) is 5.80%.

	Range	Selected
Cost of equity	8.20% - 12.30%	10.25%
Tax rate	13.10% - 18.10%	15.60%
Cost of debt	4.60% - 7.00%	5.80%
WACC	6.1% - 9.0%	7.6%

WACC

8309.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.9	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	12.30%

Tax rate	13.10%	18.10%
Debt/Equity ratio	1	1
Cost of debt	4.60%	7.00%

After-tax WACC	6.1%	9.0%


Selected WACC	7.6%

8309.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 8309.HK:

cost_of_equity (10.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.9) + 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.