YGMZ WACC - Weighted Average Cost of Capital
The WACC of MingZhu Logistics Holdings Ltd (YGMZ) is 8.4%.
| Range | Selected | |
| Cost of equity | 7.7% - 9.9% | 8.8% |
| Tax rate | 27.5% - 33.7% | 30.6% |
| Cost of debt | 6.9% - 7.0% | 6.95% |
| WACC | 7.4% - 9.3% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.84 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 9.9% |
| Tax rate | 27.5% | 33.7% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 6.9% | 7.0% |
| After-tax WACC | 7.4% | 9.3% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| YGMZ | MingZhu Logistics Holdings Ltd | 0.13 | 0.14 | 0.13 |
| HTLD | Heartland Express Inc | 0.28 | 0.79 | 0.66 |
| MTL.TO | Mullen Group Ltd | 0.8 | 0.61 | 0.4 |
| PTSI | PAM Transportation Services Inc | 0.61 | 1.29 | 0.91 |
| RRTS | Roadrunner Transportation Systems Inc | 2.03 | 1.74 | 0.73 |
| SAIA | Saia Inc | 0.03 | 0.79 | 0.77 |
| TTR.V | Titanium Transportation Group Inc | 1.13 | 1.77 | 1 |
| ULH | Universal Logistics Holdings Inc | 1.1 | 1.01 | 0.58 |
| USAK | USA Truck Inc | 0.51 | 1.07 | 0.79 |
| USX | US Xpress Enterprises Inc | 1.47 | 1.56 | 0.78 |
| Low | High | |
| Unlevered beta | 0.7 | 0.78 |
| Relevered beta | 0.76 | 0.85 |
| Adjusted relevered beta | 0.84 | 0.9 |
YGMZ'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 YGMZ:
cost_of_equity (8.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.84) + 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.