8287.HK WACC - Weighted Average Cost of Capital

The WACC of Zioncom Holdings Ltd (8287.HK) is 7.5%.

The Cost of Equity of Zioncom Holdings Ltd (8287.HK) is 15.05%.

The Cost of Debt of Zioncom Holdings Ltd (8287.HK) is 5.50%.

	Range	Selected
Cost of equity	12.70% - 17.40%	15.05%
Tax rate	13.90% - 21.10%	17.50%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.1% - 8.9%	7.5%

WACC

8287.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.64	1.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	17.40%

Tax rate	13.90%	21.10%
Debt/Equity ratio	2.47	2.47
Cost of debt	4.00%	7.00%

After-tax WACC	6.1%	8.9%


Selected WACC	7.5%

8287.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 8287.HK:

cost_of_equity (15.05%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.64) + 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.