000993.SZ WACC - Weighted Average Cost of Capital
The WACC of Fujian Mindong Electric Power Ltd Co (000993.SZ) is 7.8%.
| Range | Selected | |
| Cost of equity | 7.2% - 9.4% | 8.3% |
| Tax rate | 10.1% - 13.1% | 11.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.9% - 8.8% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.74 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 9.4% |
| Tax rate | 10.1% | 13.1% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.9% | 8.8% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000993.SZ | Fujian Mindong Electric Power Ltd Co | 0.14 | 0.7 | 0.63 |
| 000531.SZ | Guangzhou Hengyun Enterprises Holding Ltd | 1.54 | 1.17 | 0.49 |
| 000601.SZ | Guangdong Shaoneng Group Co Ltd | 1.32 | 0.96 | 0.44 |
| 000690.SZ | Guangdong Baolihua New Energy Stock Co Ltd | 0.79 | 1.09 | 0.64 |
| 000899.SZ | Jiangxi Ganneng Co Ltd | 1.18 | 1.19 | 0.58 |
| 000966.SZ | Guodian Changyuan Electric Power Co Ltd | 1.3 | 0.94 | 0.44 |
| 300335.SZ | Guangzhou Devotion Thermal Technology Co Ltd | 0.1 | 1.07 | 0.98 |
| 600212.SS | Shandong Jiangquan Industry Co Ltd | 0.05 | 1.7 | 1.62 |
| 600780.SS | Top Energy Company Ltd Shanxi | 0.07 | 1.24 | 1.17 |
| 90.HK | Puxing Energy Ltd | 3.3 | 0.51 | 0.13 |
| Low | High | |
| Unlevered beta | 0.55 | 0.63 |
| Relevered beta | 0.61 | 0.72 |
| Adjusted relevered beta | 0.74 | 0.81 |
000993.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 000993.SZ:
cost_of_equity (8.30%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.74) + 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.