97.HK
Henderson Investment Ltd
Price:  
0.13 
HKD
Volume:  
1,511,000.00
Hong Kong | Multiline Retail
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

97.HK WACC - Weighted Average Cost of Capital

The WACC of Henderson Investment Ltd (97.HK) is 6.2%.

The Cost of Equity of Henderson Investment Ltd (97.HK) is 7.95%.
The Cost of Debt of Henderson Investment Ltd (97.HK) is 6.15%.

Range Selected
Cost of equity 6.10% - 9.80% 7.95%
Tax rate 14.00% - 16.40% 15.20%
Cost of debt 5.30% - 7.00% 6.15%
WACC 5.1% - 7.3% 6.2%
WACC

97.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.54 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 9.80%
Tax rate 14.00% 16.40%
Debt/Equity ratio 1.71 1.71
Cost of debt 5.30% 7.00%
After-tax WACC 5.1% 7.3%
Selected WACC 6.2%

97.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 97.HK:

cost_of_equity (7.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.54) + 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.