4011.SR WACC - Weighted Average Cost of Capital
The WACC of Lazurde Company for Jewelry SCJC (4011.SR) is 10.8%.
| Range | Selected | |
| Cost of equity | 10.5% - 12.5% | 11.5% |
| Tax rate | 34.0% - 38.8% | 36.4% |
| Cost of debt | 4.2% - 7.1% | 5.65% |
| WACC | 9.8% - 11.7% | 10.8% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.75 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.5% | 12.5% |
| Tax rate | 34.0% | 38.8% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.2% | 7.1% |
| After-tax WACC | 9.8% | 11.7% |
| Selected WACC | 10.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4011.SR | Lazurde Company for Jewelry SCJC | 0.1 | 1.05 | 0.99 |
| 002485.SZ | Sinoer Men's Wear Co Ltd | 0.16 | 0.64 | 0.58 |
| 002574.SZ | Zhejiang Ming Jewelry Co Ltd | 0.57 | 1.31 | 0.95 |
| 1982.HK | Nameson Holdings Ltd | 0.62 | 0.21 | 0.15 |
| 3320.T | Cross Plus Inc | 0.31 | 0.76 | 0.63 |
| 3611.T | Matsuoka Corp | 0.82 | 0.92 | 0.6 |
| 4012.SR | Thob Al Aseel Co SJSC | 0.02 | 1.25 | 1.24 |
| 4414.TW | Roo Hsing Co Ltd | 1.36 | 0.41 | 0.22 |
| 4438.TW | Quang Viet Enterprise Co Ltd | 0.51 | 0.85 | 0.64 |
| 9982.T | Takihyo Co Ltd | 0.61 | 0.61 | 0.44 |
| Low | High | |
| Unlevered beta | 0.59 | 0.63 |
| Relevered beta | 0.63 | 0.67 |
| Adjusted relevered beta | 0.75 | 0.78 |
4011.SR'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 4011.SR:
cost_of_equity (11.50%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.75) + 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.