000955.SZ WACC - Weighted Average Cost of Capital
The WACC of Xinlong Holding Group Company Ltd (000955.SZ) is 9.1%.
| Range | Selected | |
| Cost of equity | 7.5% - 11.0% | 9.25% |
| Tax rate | 1.5% - 7.7% | 4.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.5% - 10.7% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.79 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 11.0% |
| Tax rate | 1.5% | 7.7% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.5% | 10.7% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000955.SZ | Xinlong Holding Group Company Ltd | 0.03 | 1.67 | 1.61 |
| 002144.SZ | Hongda High-Tech Holding Co Ltd | 0.03 | 1.13 | 1.1 |
| 002486.SZ | Shanghai Challenge Textile Co Ltd | 0.02 | 1.52 | 1.49 |
| 1400.HK | Moody Technology Holdings Ltd | 1.97 | 1.13 | 0.38 |
| 1968.HK | Hingtex Holdings Ltd | 0.51 | 0.31 | 0.2 |
| 300658.SZ | Xiamen Yanjan New Material Co Ltd | 0.51 | 1.3 | 0.86 |
| 300819.SZ | Jiangsu Jujie Microfiber Technology Group Co Ltd | 0.01 | 1.29 | 1.27 |
| 528.HK | Kingdom Holdings Ltd | 1.42 | 0.01 | 0.01 |
| 603238.SS | HangZhou Nbond Nonwovens Co Ltd | 0.16 | 1.07 | 0.93 |
| 8607.HK | Narnia (Hong Kong) Group Co Ltd | 1.81 | 0.38 | 0.14 |
| Low | High | |
| Unlevered beta | 0.67 | 1 |
| Relevered beta | 0.69 | 1.03 |
| Adjusted relevered beta | 0.79 | 1.02 |
000955.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 000955.SZ:
cost_of_equity (9.25%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.79) + 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.