99.HK WACC - Weighted Average Cost of Capital

The WACC of Wong's International Holdings Ltd (99.HK) is 7.2%.

The Cost of Equity of Wong's International Holdings Ltd (99.HK) is 16.25%.

The Cost of Debt of Wong's International Holdings Ltd (99.HK) is 5.00%.

	Range	Selected
Cost of equity	12.20% - 20.30%	16.25%
Tax rate	25.90% - 28.10%	27.00%
Cost of debt	4.00% - 6.00%	5.00%
WACC	5.6% - 8.8%	7.2%

WACC

99.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.56	2.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	20.30%

Tax rate	25.90%	28.10%
Debt/Equity ratio	2.54	2.54
Cost of debt	4.00%	6.00%

After-tax WACC	5.6%	8.8%


Selected WACC	7.2%

99.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 99.HK:

cost_of_equity (16.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.56) + 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.