1458.HK
Zhou Hei Ya International Holdings Company Ltd
Price:  
2.6 
HKD
Volume:  
3,096,504
China | Food Products

1458.HK WACC - Weighted Average Cost of Capital

The WACC of Zhou Hei Ya International Holdings Company Ltd (1458.HK) is 9.7%.

The Cost of Equity of Zhou Hei Ya International Holdings Company Ltd (1458.HK) is 10.25%.
The Cost of Debt of Zhou Hei Ya International Holdings Company Ltd (1458.HK) is 4.25%.

RangeSelected
Cost of equity9.0% - 11.5%10.25%
Tax rate30.2% - 38.9%34.55%
Cost of debt4.0% - 4.5%4.25%
WACC8.5% - 10.9%9.7%
WACC

1458.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta1.021.09
Additional risk adjustments0.0%0.5%
Cost of equity9.0%11.5%
Tax rate30.2%38.9%
Debt/Equity ratio
0.080.08
Cost of debt4.0%4.5%
After-tax WACC8.5%10.9%
Selected WACC9.7%

1458.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 1458.HK:

cost_of_equity (10.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.02) + 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.