943.HK WACC - Weighted Average Cost of Capital
The WACC of Zhongzheng International Co Ltd (943.HK) is 4.4%.
| Range | Selected | |
| Cost of equity | 5.7% - 8.7% | 7.2% |
| Tax rate | 1.7% - 2.4% | 2.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.1% - 4.8% | 4.4% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.47 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 8.7% |
| Tax rate | 1.7% | 2.4% |
| Debt/Equity ratio | 10.49 | 10.49 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.1% | 4.8% |
| Selected WACC | 4.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 943.HK | Zhongzheng International Co Ltd | 10.49 | 0.76 | 0.07 |
| 157.HK | Natural Beauty Bio-Technology Ltd | 0.21 | -0.06 | -0.05 |
| 1962.HK | Evergreen Products Group Ltd | 1.67 | -0.02 | -0.01 |
| 3828.HK | Ming Fai International Holdings Ltd | 0.11 | 0.33 | 0.3 |
| 4930.T | Graphico Inc | 0.24 | -0.41 | -0.33 |
| 6893.HK | Hin Sang Group (International) Holding Co Ltd | 1.63 | 0.16 | 0.06 |
| 8436.HK | Takbo Group Holdings Ltd | 0.1 | -0.14 | -0.13 |
| 900300.KQ | Organic Tea Cosmetics Holdings Co Ltd | 0.6 | 0.07 | 0.04 |
| 932.HK | Shunten International (Holdings) Ltd | 1.83 | 0.1 | 0.04 |
| MBTO.JK | Martina Berto Tbk PT | 2.12 | 0.26 | 0.08 |
| Low | High | |
| Unlevered beta | 0.02 | 0.05 |
| Relevered beta | 0.21 | 0.55 |
| Adjusted relevered beta | 0.47 | 0.7 |
943.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 943.HK:
cost_of_equity (7.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.47) + 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.