Zinc8 Energy Solutions Inc (ZAIR.CN) WACC Analysis

As of May 23, 2025, Zinc8 Energy Solutions Inc (ZAIR.CN) carries a Weighted Average Cost of Capital (WACC) of 7.1%. WACC reflects the blended rate Zinc8 Energy Solutions Inc must pay to both equity and debt holders.

Within that, the cost of equity is 6.4%, the cost of debt is 5.0%, and the effective tax rate is 25.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.6% – 4.1%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.56 – 0.71
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.17

What It Means for Investors

With a selected WACC of 7.1%, Zinc8 Energy Solutions Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.