000821.SZ
J.S. Corrugating Machinery Co Ltd
Price:  
11.7 
CNY
Volume:  
16,471,842
China | Machinery

000821.SZ WACC - Weighted Average Cost of Capital

The WACC of J.S. Corrugating Machinery Co Ltd (000821.SZ) is 8.8%.

The Cost of Equity of J.S. Corrugating Machinery Co Ltd (000821.SZ) is 10.65%.
The Cost of Debt of J.S. Corrugating Machinery Co Ltd (000821.SZ) is 5%.

RangeSelected
Cost of equity9.2% - 12.1%10.65%
Tax rate8.2% - 10.9%9.55%
Cost of debt5.0% - 5.0%5%
WACC7.8% - 9.8%8.8%
WACC

000821.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.061.18
Additional risk adjustments0.0%0.5%
Cost of equity9.2%12.1%
Tax rate8.2%10.9%
Debt/Equity ratio
0.420.42
Cost of debt5.0%5.0%
After-tax WACC7.8%9.8%
Selected WACC8.8%

000821.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 000821.SZ:

cost_of_equity (10.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.06) + 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.