000507.SZ WACC - Weighted Average Cost of Capital

The WACC of Zhuhai Port Co Ltd (000507.SZ) is 6.2%.

The Cost of Equity of Zhuhai Port Co Ltd (000507.SZ) is 10.20%.

The Cost of Debt of Zhuhai Port Co Ltd (000507.SZ) is 5.00%.

	Range	Selected
Cost of equity	7.70% - 12.70%	10.20%
Tax rate	18.60% - 20.10%	19.35%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.3% - 7.1%	6.2%

WACC

000507.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.81	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	12.70%

Tax rate	18.60%	20.10%
Debt/Equity ratio	1.81	1.81
Cost of debt	5.00%	5.00%

After-tax WACC	5.3%	7.1%


Selected WACC	6.2%

000507.SZ'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 000507.SZ:

cost_of_equity (10.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.81) + 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.