8340.HK WACC - Weighted Average Cost of Capital

The WACC of Vinco Financial Group Ltd (8340.HK) is 8.6%.

The Cost of Equity of Vinco Financial Group Ltd (8340.HK) is 6.70%.

The Cost of Debt of Vinco Financial Group Ltd (8340.HK) is 12.65%.

	Range	Selected
Cost of equity	5.70% - 7.70%	6.70%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	7.00% - 18.30%	12.65%
WACC	5.5% - 11.6%	8.6%

WACC

8340.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.47	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	7.70%

Tax rate	22.10%	22.30%
Debt/Equity ratio	1.54	1.54
Cost of debt	7.00%	18.30%

After-tax WACC	5.5%	11.6%


Selected WACC	8.6%

8340.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 8340.HK:

cost_of_equity (6.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.47) + 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.