672.HK
Zhong An Group Ltd
Price:  
0.14 
HKD
Volume:  
11,282,400.00
China | Real Estate Management & Development
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672.HK WACC - Weighted Average Cost of Capital

The WACC of Zhong An Group Ltd (672.HK) is 6.5%.

The Cost of Equity of Zhong An Group Ltd (672.HK) is 30.15%.
The Cost of Debt of Zhong An Group Ltd (672.HK) is 5.05%.

Range Selected
Cost of equity 25.90% - 34.40% 30.15%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 5.00% - 5.10% 5.05%
WACC 6.1% - 7.0% 6.5%
WACC

672.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 3.86 4.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 25.90% 34.40%
Tax rate 22.10% 22.30%
Debt/Equity ratio 9.06 9.06
Cost of debt 5.00% 5.10%
After-tax WACC 6.1% 7.0%
Selected WACC 6.5%

672.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 672.HK:

cost_of_equity (30.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (3.86) + 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.