000151.SZ WACC - Weighted Average Cost of Capital

The WACC of China National Complete Plant Import & Export Corp Ltd (000151.SZ) is 7.8%.

The Cost of Equity of China National Complete Plant Import & Export Corp Ltd (000151.SZ) is 8.25%.

The Cost of Debt of China National Complete Plant Import & Export Corp Ltd (000151.SZ) is 5.00%.

	Range	Selected
Cost of equity	6.20% - 10.30%	8.25%
Tax rate	8.90% - 9.80%	9.35%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.0% - 9.5%	7.8%

WACC

000151.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.58	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	10.30%

Tax rate	8.90%	9.80%
Debt/Equity ratio	0.14	0.14
Cost of debt	5.00%	5.00%

After-tax WACC	6.0%	9.5%


Selected WACC	7.8%

000151.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 000151.SZ:

cost_of_equity (8.25%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.58) + 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.