ZGL.AX WACC - Weighted Average Cost of Capital
The WACC of Zicom Group Ltd (ZGL.AX) is 8.2%.
| Range | Selected | |
| Cost of equity | 14.4% - 18.9% | 16.65% |
| Tax rate | 9.0% - 21.7% | 15.35% |
| Cost of debt | 4.6% - 4.7% | 4.65% |
| WACC | 7.7% - 8.8% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 2.04 | 2.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.4% | 18.9% |
| Tax rate | 9.0% | 21.7% |
| Debt/Equity ratio | 1.95 | 1.95 |
| Cost of debt | 4.6% | 4.7% |
| After-tax WACC | 7.7% | 8.8% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ZGL.AX | Zicom Group Ltd | 1.95 | -0.22 | -0.08 |
| 3DA.AX | Amaero International Ltd | 0.06 | 1.62 | 1.54 |
| 6356.T | Nippon Gear Co Ltd | 0.01 | 0.99 | 0.98 |
| A3D.AX | Aurora Labs Ltd | 0.06 | 1.53 | 1.45 |
| ADORWELD.NS | Ador Welding Ltd | 0.03 | 0.95 | 0.93 |
| AL3.AX | AML3D Ltd | 0.03 | 1.91 | 1.87 |
| KOV.AX | Korvest Ltd | 0.04 | 0.48 | 0.46 |
| LBL.AX | LaserBond Ltd | 0.32 | 1.14 | 0.89 |
| VEE.AX | VEEM Ltd | 0.22 | 1.43 | 1.2 |
| XRF.AX | XRF Scientific Ltd | 0.01 | 0.95 | 0.94 |
| Low | High | |
| Unlevered beta | 0.93 | 1.07 |
| Relevered beta | 2.55 | 2.91 |
| Adjusted relevered beta | 2.04 | 2.28 |
ZGL.AX'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 ZGL.AX:
cost_of_equity (16.65%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (2.04) + 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.