8219.HK WACC - Weighted Average Cost of Capital

The WACC of Hanvey Group Holdings Ltd (8219.HK) is 9.7%.

The Cost of Equity of Hanvey Group Holdings Ltd (8219.HK) is 6.80%.

The Cost of Debt of Hanvey Group Holdings Ltd (8219.HK) is 15.15%.

	Range	Selected
Cost of equity	3.60% - 10.00%	6.80%
Tax rate	4.90% - 6.00%	5.45%
Cost of debt	7.40% - 22.90%	15.15%
WACC	5.0% - 14.5%	9.7%

WACC

8219.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.12	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	3.60%	10.00%

Tax rate	4.90%	6.00%
Debt/Equity ratio	0.64	0.64
Cost of debt	7.40%	22.90%

After-tax WACC	5.0%	14.5%


Selected WACC	9.7%

8219.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 8219.HK:

cost_of_equity (6.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.12) + 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.