000700.SZ WACC - Weighted Average Cost of Capital
The WACC of Jiangnan Mould & Plastic Technology Co Ltd (000700.SZ) is 9.5%.
| Range | Selected | |
| Cost of equity | 9.8% - 12.6% | 11.2% |
| Tax rate | 5.2% - 11.5% | 8.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.5% - 10.5% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.16 | 1.25 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 12.6% |
| Tax rate | 5.2% | 11.5% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.5% | 10.5% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000700.SZ | Jiangnan Mould & Plastic Technology Co Ltd | 0.35 | 1.39 | 1.05 |
| 000757.SZ | Sichuan Haowu Electromechanical Co Ltd | 0.21 | 1.24 | 1.03 |
| 000901.SZ | Aerospace Hi-Tech Holding Group Co Ltd | 0.18 | 1.37 | 1.17 |
| 001696.SZ | Chongqing Zongshen Power Machinery Co Ltd | 0.12 | 1.34 | 1.2 |
| 002126.SZ | Zhejiang Yinlun Machinery Co Ltd | 0.32 | 1.03 | 0.79 |
| 002537.SZ | HyUnion Holding Co Ltd | 0.17 | 1.06 | 0.92 |
| 300473.SZ | Fuxin Dare Automotive Parts Co Ltd | 0.2 | 0.83 | 0.7 |
| 600081.SS | Dongfeng Electronic Technology Co Ltd | 0.14 | 1.32 | 1.16 |
| 600960.SS | Bohai Automotive Systems Co Ltd | 0.45 | 1.33 | 0.94 |
| 603358.SS | Huada Automotive Technology Co Ltd | 0.08 | 0.62 | 0.58 |
| Low | High | |
| Unlevered beta | 0.93 | 1.04 |
| Relevered beta | 1.24 | 1.37 |
| Adjusted relevered beta | 1.16 | 1.25 |
000700.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 000700.SZ:
cost_of_equity (11.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.16) + 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.