000039.SZ WACC - Weighted Average Cost of Capital
The WACC of China International Marine Containers Group Co Ltd (000039.SZ) is 7.1%.
| Range | Selected | |
| Cost of equity | 10.9% - 14.3% | 12.6% |
| Tax rate | 34.0% - 35.1% | 34.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.5% - 7.8% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.35 | 1.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.9% | 14.3% |
| Tax rate | 34.0% | 35.1% |
| Debt/Equity ratio | 1.42 | 1.42 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.5% | 7.8% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000039.SZ | China International Marine Containers Group Co Ltd | 1.42 | 1.18 | 0.61 |
| 000967.SZ | Infore Environment Technology Group Co Ltd | 0.27 | 1.04 | 0.88 |
| 002050.SZ | Zhejiang Sanhua Intelligent Controls Co Ltd | 0.08 | 1.7 | 1.61 |
| 002685.SZ | Wuxi Huadong Heavy Machinery Co Ltd | 0.03 | 0.85 | 0.83 |
| 1882.HK | Haitian International Holdings Ltd | 0.1 | 0.76 | 0.72 |
| 3899.HK | CIMC Enric Holdings Ltd | 0.24 | 0.6 | 0.52 |
| 600582.SS | Tiandi Science & Technology Co Ltd | 0.14 | 1 | 0.92 |
| 600619.SS | Shanghai Highly Group Co Ltd | 0.78 | 2.04 | 1.34 |
| 600835.SS | Shanghai Mechanical & Electrical Industry Co Ltd | 0.02 | 1.61 | 1.58 |
| 601106.SS | China First Heavy Industries | 1.31 | 1.11 | 0.6 |
| Low | High | |
| Unlevered beta | 0.79 | 0.9 |
| Relevered beta | 1.52 | 1.73 |
| Adjusted relevered beta | 1.35 | 1.49 |
000039.SZ'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 000039.SZ:
cost_of_equity (12.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.35) + 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.