000159.SZ WACC - Weighted Average Cost of Capital
The WACC of Xinjiang International Industry Co Ltd (000159.SZ) is 8.1%.
| Range | Selected | |
| Cost of equity | 8.4% - 10.9% | 9.65% |
| Tax rate | 13.7% - 15.6% | 14.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.2% - 9.0% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.93 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 10.9% |
| Tax rate | 13.7% | 15.6% |
| Debt/Equity ratio | 0.4 | 0.4 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.2% | 9.0% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000159.SZ | Xinjiang International Industry Co Ltd | 0.4 | 1.17 | 0.88 |
| 000096.SZ | Shenzhen Guangju Energy Co Ltd | 0 | 0.63 | 0.63 |
| 000554.SZ | SINOPEC Shandong Taishan Petroleum Co Ltd | 0.04 | 0.92 | 0.89 |
| 024060.KQ | HeunguOil | 0.05 | 0.22 | 0.21 |
| 600397.SS | Anyuan Coal Industry Group Co Ltd | 0.87 | 1.2 | 0.69 |
| 603003.SS | Shanghai Lonyer Fuels Co Ltd | 0.62 | 1.11 | 0.73 |
| 688196.SS | Longyan Zhuoyue New Energy Co Ltd | 0.15 | 1.12 | 0.99 |
| 8479.HK | JTF International Holdings Ltd | 0.01 | -0.27 | -0.27 |
| 979.HK | Green Energy Group Ltd | 0.01 | 0.83 | 0.82 |
| HTC.VN | HocMon Trade JSC | 0.13 | -0.36 | -0.32 |
| Low | High | |
| Unlevered beta | 0.67 | 0.76 |
| Relevered beta | 0.9 | 1.03 |
| Adjusted relevered beta | 0.93 | 1.02 |
000159.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 000159.SZ:
cost_of_equity (9.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.93) + 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.