8309.HK WACC - Weighted Average Cost of Capital

The WACC of Man Shing Global Holdings Ltd (8309.HK) is 8.5%.

The Cost of Equity of Man Shing Global Holdings Ltd (8309.HK) is 9.55%.

The Cost of Debt of Man Shing Global Holdings Ltd (8309.HK) is 8.05%.

	Range	Selected
Cost of equity	8.00% - 11.10%	9.55%
Tax rate	13.10% - 37.10%	25.10%
Cost of debt	8.00% - 8.10%	8.05%
WACC	7.7% - 9.3%	8.5%

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	0.87	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	11.10%

Tax rate	13.10%	37.10%
Debt/Equity ratio	0.41	0.41
Cost of debt	8.00%	8.10%

After-tax WACC	7.7%	9.3%


Selected WACC	8.5%

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 (9.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.87) + 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.