8340.HK WACC - Weighted Average Cost of Capital

The WACC of Vinco Financial Group Ltd (8340.HK) is 9.5%.

The Cost of Equity of Vinco Financial Group Ltd (8340.HK) is 9.25%.

The Cost of Debt of Vinco Financial Group Ltd (8340.HK) is 12.40%.

	Range	Selected
Cost of equity	6.50% - 12.00%	9.25%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	7.00% - 17.80%	12.40%
WACC	5.9% - 13.0%	9.5%

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	0.6	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	12.00%

Tax rate	22.10%	22.30%
Debt/Equity ratio	1.33	1.33
Cost of debt	7.00%	17.80%

After-tax WACC	5.9%	13.0%


Selected WACC	9.5%

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 (9.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.6) + 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.