8619.HK WACC - Weighted Average Cost of Capital
The WACC of WAC Holdings Ltd (8619.HK) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.6% | 6.5% |
| Tax rate | 9.2% - 18.8% | 14% |
| Cost of debt | 5.0% - 7.0% | 6% |
| WACC | 5.3% - 7.3% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.33 | 0.46 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.4% | 7.6% |
| Tax rate | 9.2% | 18.8% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 5.0% | 7.0% |
| After-tax WACC | 5.3% | 7.3% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8619.HK | WAC Holdings Ltd | 0.15 | -0.07 | -0.06 |
| 007120.KS | Mirae ING Co Ltd | 0.64 | 0.26 | 0.16 |
| 1486.HK | C Cheng Holdings Ltd | 1.2 | 0.1 | 0.05 |
| 6128.HK | Earthasia International Holdings Ltd | 1.02 | 1.26 | 0.67 |
| 8039.HK | KNK Holdings Ltd | 0.14 | 1.38 | 1.23 |
| 8072.HK | Roma Group Ltd | 1.89 | -0.49 | -0.19 |
| EAX.AX | Energy Action Ltd | 0.31 | -1.19 | -0.93 |
| SOP.AX | SML Corporation Ltd | 0.12 | -1.16 | -1.04 |
| TVC.VN | Tri Viet Asset Management Corporation JSC | 0.16 | 1.27 | 1.12 |
| VNC.VN | Vinacontrol Group Corp | 0.01 | 0.17 | 0.17 |
| Low | High | |
| Unlevered beta | 0 | 0.17 |
| Relevered beta | 0 | 0.19 |
| Adjusted relevered beta | 0.33 | 0.46 |
8619.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 8619.HK:
cost_of_equity (6.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.