000995.SZ WACC - Weighted Average Cost of Capital
The WACC of Gansu Huangtai Wine-Marketing Industry Co Ltd (000995.SZ) is 9.0%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.8% | 9.35% |
| Tax rate | 0.1% - 2.2% | 1.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 10.4% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.85 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.8% |
| Tax rate | 0.1% | 2.2% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 10.4% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000995.SZ | Gansu Huangtai Wine-Marketing Industry Co Ltd | 0.06 | 1.33 | 1.25 |
| 600059.SS | Zhejiang Guyuelongshan Shaoxing Wine Co Ltd | 0 | 0.91 | 0.91 |
| 600084.SS | Citic Guoan Wine Co Ltd | 0.01 | 1.18 | 1.17 |
| 600365.SS | Tonghua Grape Wine Co Ltd | 0.22 | 0.64 | 0.53 |
| 600543.SS | Gansu Mogao Industrial Development Co Ltd | 0.03 | 0.23 | 0.22 |
| 600616.SS | Shanghai Jinfeng Wine Co Ltd | 0.02 | 0.97 | 0.96 |
| 601579.SS | Kuaijishan Shaoxing Rice Wine Co Ltd | 0.01 | 0.98 | 0.97 |
| 603779.SS | Weilong Grape Wine Co Ltd | 0.1 | 0.95 | 0.86 |
| 8146.HK | Grace Wine Holdings Ltd | 0.74 | -0.24 | -0.14 |
| BKV.SI | Dukang Distillers Holdings Ltd | 0.37 | -0.64 | -0.47 |
| Low | High | |
| Unlevered beta | 0.73 | 0.93 |
| Relevered beta | 0.78 | 0.99 |
| Adjusted relevered beta | 0.85 | 0.99 |
000995.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 000995.SZ:
cost_of_equity (9.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.85) + 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.