6158.HK WACC - Weighted Average Cost of Capital

The WACC of Zhenro Properties Group Ltd (6158.HK) is 5.9%.

The Cost of Equity of Zhenro Properties Group Ltd (6158.HK) is 337.45%.

The Cost of Debt of Zhenro Properties Group Ltd (6158.HK) is 6.10%.

	Range	Selected
Cost of equity	234.20% - 440.70%	337.45%
Tax rate	10.40% - 23.90%	17.15%
Cost of debt	5.20% - 7.00%	6.10%
WACC	5.3% - 6.5%	5.9%

WACC

6158.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	38.68	62.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	234.20%	440.70%

Tax rate	10.40%	23.90%
Debt/Equity ratio	371.33	371.33
Cost of debt	5.20%	7.00%

After-tax WACC	5.3%	6.5%


Selected WACC	5.9%

6158.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 6158.HK:

cost_of_equity (337.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (38.68) + 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.