000983.SZ
Shanxi Coking Coal Energy Group Co Ltd
Price:  
6.41 
CNY
Volume:  
20,363,550.00
China | Oil, Gas & Consumable Fuels
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000983.SZ WACC - Weighted Average Cost of Capital

The WACC of Shanxi Coking Coal Energy Group Co Ltd (000983.SZ) is 8.7%.

The Cost of Equity of Shanxi Coking Coal Energy Group Co Ltd (000983.SZ) is 10.40%.
The Cost of Debt of Shanxi Coking Coal Energy Group Co Ltd (000983.SZ) is 5.00%.

Range Selected
Cost of equity 9.10% - 11.70% 10.40%
Tax rate 28.60% - 29.50% 29.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.8% - 9.7% 8.7%
WACC

000983.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.05 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.10% 11.70%
Tax rate 28.60% 29.50%
Debt/Equity ratio 0.32 0.32
Cost of debt 5.00% 5.00%
After-tax WACC 7.8% 9.7%
Selected WACC 8.7%

000983.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 000983.SZ:

cost_of_equity (10.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.05) + 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.