8362.HK WACC - Weighted Average Cost of Capital

The WACC of Winning Tower Group Holdings Ltd (8362.HK) is 7.2%.

The Cost of Equity of Winning Tower Group Holdings Ltd (8362.HK) is 6.15%.

The Cost of Debt of Winning Tower Group Holdings Ltd (8362.HK) is 13.45%.

	Range	Selected
Cost of equity	5.20% - 7.10%	6.15%
Tax rate	6.40% - 8.40%	7.40%
Cost of debt	4.00% - 22.90%	13.45%
WACC	5.0% - 9.4%	7.2%

WACC

8362.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.23	0.33

Additional risk adjustments	1.0%	1.5%
Cost of equity	5.20%	7.10%

Tax rate	6.40%	8.40%
Debt/Equity ratio	0.2	0.2
Cost of debt	4.00%	22.90%

After-tax WACC	5.0%	9.4%


Selected WACC	7.2%

8362.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 8362.HK:

cost_of_equity (6.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.23) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.