000543.SZ WACC - Weighted Average Cost of Capital
The WACC of An Hui Wenergy Co Ltd (000543.SZ) is 6.1%.
| Range | Selected | |
| Cost of equity | 8.8% - 11.4% | 10.1% |
| Tax rate | 14.2% - 14.9% | 14.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 6.4% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.01 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 11.4% |
| Tax rate | 14.2% | 14.9% |
| Debt/Equity ratio | 2.27 | 2.27 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 6.4% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000543.SZ | An Hui Wenergy Co Ltd | 2.27 | 0.56 | 0.19 |
| 000600.SZ | Jointo Energy Investment Co Ltd Hebei | 1.98 | 1.35 | 0.5 |
| 000767.SZ | Jinneng Holding Shanxi Electric Power Co Ltd | 3.78 | 1.23 | 0.29 |
| 000883.SZ | Hubei Energy Group Co Ltd | 1.61 | 0.79 | 0.33 |
| 579.HK | Beijing Jingneng Clean Energy Co Ltd | 3 | 0.63 | 0.18 |
| 600483.SS | Fujian Funeng Co Ltd | 0.66 | 0.62 | 0.4 |
| 600578.SS | Beijing Jingneng Power Co Ltd | 1.62 | 0.9 | 0.38 |
| 600726.SS | Huadian Energy Co Ltd | 0.81 | 1.01 | 0.6 |
| 600744.SS | Datang HuaYin Electric Power Co Ltd | 2.33 | 1.05 | 0.35 |
| 600863.SS | Inner Mongolia MengDian HuaNeng Thermal Power Corp Ltd | 0.46 | 0.66 | 0.48 |
| Low | High | |
| Unlevered beta | 0.34 | 0.38 |
| Relevered beta | 1.01 | 1.13 |
| Adjusted relevered beta | 1.01 | 1.09 |
000543.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 000543.SZ:
cost_of_equity (10.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.01) + 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.