000060.SZ WACC - Weighted Average Cost of Capital
The WACC of Shenzhen Zhongjin Lingnan Nonfemet Co Ltd (000060.SZ) is 7.2%.
| Range | Selected | |
| Cost of equity | 9.0% - 12.2% | 10.6% |
| Tax rate | 12.4% - 14.7% | 13.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.5% - 7.9% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.04 | 1.19 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.0% | 12.2% |
| Tax rate | 12.4% | 14.7% |
| Debt/Equity ratio | 1.17 | 1.17 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.5% | 7.9% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000060.SZ | Shenzhen Zhongjin Lingnan Nonfemet Co Ltd | 1.17 | 0.98 | 0.49 |
| 000758.SZ | China Nonferrous Metal Industry's Foreign Engineering and Construction Co Ltd | 0.54 | 1.21 | 0.82 |
| 000933.SZ | Henan Shenhuo Coal & Power Co Ltd | 0.44 | 1.42 | 1.03 |
| 000975.SZ | Yintai Gold Co Ltd | 0.03 | 0.26 | 0.26 |
| 1303.HK | Huili Resources Group Ltd | 0.26 | -0.16 | -0.13 |
| 3833.HK | Xinjiang Xinxin Mining Industry Co Ltd | 0.5 | 0.87 | 0.6 |
| 3939.HK | Wanguo International Mining Group Ltd | 0.01 | 0.04 | 0.04 |
| 600531.SS | Henan Yuguang Gold & Lead Co Ltd | 1.27 | 1.15 | 0.55 |
| 601168.SS | Western Mining Co Ltd | 0.61 | 1.05 | 0.68 |
| 601958.SS | Jinduicheng Molybdenum Co Ltd | 0 | 0.95 | 0.94 |
| Low | High | |
| Unlevered beta | 0.52 | 0.64 |
| Relevered beta | 1.06 | 1.28 |
| Adjusted relevered beta | 1.04 | 1.19 |
000060.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 000060.SZ:
cost_of_equity (10.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.04) + 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.