8135.HK
ZMFY Automobile Glass Services Ltd
Price:  
0.23 
HKD
Volume:  
15,000
China | Specialty Retail

8135.HK WACC - Weighted Average Cost of Capital

The WACC of ZMFY Automobile Glass Services Ltd (8135.HK) is 5.4%.

The Cost of Equity of ZMFY Automobile Glass Services Ltd (8135.HK) is 5.4%.
The Cost of Debt of ZMFY Automobile Glass Services Ltd (8135.HK) is 7%.

RangeSelected
Cost of equity4.5% - 6.3%5.4%
Tax rate10.0% - 17.6%13.8%
Cost of debt7.0% - 7.0%7%
WACC4.6% - 6.3%5.4%
WACC

8135.HK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.0%7.0%
Adjusted beta0.270.35
Additional risk adjustments0.0%0.5%
Cost of equity4.5%6.3%
Tax rate10.0%17.6%
Debt/Equity ratio
0.050.05
Cost of debt7.0%7.0%
After-tax WACC4.6%6.3%
Selected WACC5.4%

8135.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 8135.HK:

cost_of_equity (5.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.27) + 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.