EVK WACC - Weighted Average Cost of Capital
The WACC of Ever-Glory International Group Inc (EVK) is 8.4%.
| Range | Selected | |
| Cost of equity | 8.0% - 12.9% | 10.45% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.7% - 17.0% | 11.35% |
| WACC | 4.5% - 12.4% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 0.76 | 1.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 12.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 15.82 | 15.82 |
| Cost of debt | 5.7% | 17.0% |
| After-tax WACC | 4.5% | 12.4% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EVK | Ever-Glory International Group Inc | 15.82 | -0.19 | -0.02 |
| DLA | Delta Apparel Inc | 318.27 | 0.9 | 0 |
| DOGZ | Dogness International Corp | 0.02 | 0.13 | 0.13 |
| IFA.TO | iFabric Corp | 0.06 | 0.02 | 0.02 |
| JLMC | JLM Couture Inc | 0.41 | 0.22 | 0.17 |
| LAKE | Lakeland Industries Inc | 0.1 | 0.93 | 0.87 |
| MENE.V | Mene Inc | 0.02 | 1.18 | 1.16 |
| SGC | Superior Group of Companies Inc | 0.54 | 1.06 | 0.76 |
| TALN | Talon International Inc | 0.99 | -0.34 | -0.2 |
| UNI.TO | Unisync Corp | 2.11 | -0.08 | -0.03 |
| Low | High | |
| Unlevered beta | 0.01 | 0.14 |
| Relevered beta | 0.64 | 1.43 |
| Adjusted relevered beta | 0.76 | 1.29 |
EVK'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 EVK:
cost_of_equity (10.45%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.76) + 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.