672.HK
Zhong An Group Ltd
Price:  
0.12 
HKD
Volume:  
18,016,200.00
China | Real Estate Management & Development
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

672.HK WACC - Weighted Average Cost of Capital

The WACC of Zhong An Group Ltd (672.HK) is 6.3%.

The Cost of Equity of Zhong An Group Ltd (672.HK) is 34.80%.
The Cost of Debt of Zhong An Group Ltd (672.HK) is 5.05%.

Range Selected
Cost of equity 29.50% - 40.10% 34.80%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 5.00% - 5.10% 5.05%
WACC 5.9% - 6.8% 6.3%
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 4.45 5.2
Additional risk adjustments 0.0% 0.5%
Cost of equity 29.50% 40.10%
Tax rate 22.10% 22.30%
Debt/Equity ratio 11.84 11.84
Cost of debt 5.00% 5.10%
After-tax WACC 5.9% 6.8%
Selected WACC 6.3%

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 (34.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (4.45) + 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.