000798.SZ WACC - Weighted Average Cost of Capital
The WACC of CNFC Overseas Fisheries Co Ltd (000798.SZ) is 9.7%.
| Range | Selected | |
| Cost of equity | 13.0% - 20.3% | 16.65% |
| Tax rate | 3.3% - 9.5% | 6.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.2% - 11.1% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.69 | 2.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.0% | 20.3% |
| Tax rate | 3.3% | 9.5% |
| Debt/Equity ratio | 1.4 | 1.4 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.2% | 11.1% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000798.SZ | CNFC Overseas Fisheries Co Ltd | 1.4 | 1.03 | 0.44 |
| 002772.SZ | Tianshui Zhongxing Bio-technology Co Ltd | 0.72 | 0.83 | 0.49 |
| 300094.SZ | Zhanjiang Guolian Aquatic Products Co Ltd | 0.41 | 1.83 | 1.31 |
| 300106.SZ | Xinjiang Western Animal Husbandry Co Ltd | 0.09 | 1.46 | 1.35 |
| 300175.SZ | Lontrue Co Ltd | 0.04 | 1.44 | 1.39 |
| 300858.SZ | Beijing Scitop Bio tech Co Ltd | 0 | 1.26 | 1.26 |
| 300915.SZ | Shanghai Hi-Road Food Technology Co Ltd | 0.02 | 1.43 | 1.4 |
| 600257.SS | Dahu Aquaculture Co Ltd | 0.32 | 1.11 | 0.85 |
| 600275.SS | Hubei Wuchangyu Co Ltd | 0.05 | 0.85 | 0.81 |
| 603336.SS | Great-Sun Foods Co Ltd | 0.23 | 1.07 | 0.88 |
| Low | High | |
| Unlevered beta | 0.87 | 1.28 |
| Relevered beta | 2.03 | 2.99 |
| Adjusted relevered beta | 1.69 | 2.33 |
000798.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 000798.SZ:
cost_of_equity (16.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.69) + 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.