8313.HK WACC - Weighted Average Cost of Capital

The WACC of ZACD Group Ltd (8313.HK) is 7.1%.

The Cost of Equity of ZACD Group Ltd (8313.HK) is 6.80%.

The Cost of Debt of ZACD Group Ltd (8313.HK) is 10.85%.

	Range	Selected
Cost of equity	5.90% - 7.70%	6.80%
Tax rate	6.60% - 11.00%	8.80%
Cost of debt	7.00% - 14.70%	10.85%
WACC	5.9% - 8.3%	7.1%

WACC

8313.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.5	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	7.70%

Tax rate	6.60%	11.00%
Debt/Equity ratio	0.13	0.13
Cost of debt	7.00%	14.70%

After-tax WACC	5.9%	8.3%


Selected WACC	7.1%

8313.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 8313.HK:

cost_of_equity (6.80%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.5) + 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.