000692.SZ
Shenyang Huitian Thermal Power Co Ltd
Price:  
3.42 
CNY
Volume:  
9,473,000.00
China | Water Utilities
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

000692.SZ WACC - Weighted Average Cost of Capital

The WACC of Shenyang Huitian Thermal Power Co Ltd (000692.SZ) is 7.3%.

The Cost of Equity of Shenyang Huitian Thermal Power Co Ltd (000692.SZ) is 10.40%.
The Cost of Debt of Shenyang Huitian Thermal Power Co Ltd (000692.SZ) is 5.00%.

Range Selected
Cost of equity 8.60% - 12.20% 10.40%
Tax rate 3.60% - 5.60% 4.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.5% - 8.0% 7.3%
WACC

000692.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.97 1.2
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 12.20%
Tax rate 3.60% 5.60%
Debt/Equity ratio 1.28 1.28
Cost of debt 5.00% 5.00%
After-tax WACC 6.5% 8.0%
Selected WACC 7.3%

000692.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 000692.SZ:

cost_of_equity (10.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.97) + 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.