002054.SZ
Dymatic Chemicals Inc
Price:  
6.31 
CNY
Volume:  
23,745,524.00
China | Chemicals
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002054.SZ WACC - Weighted Average Cost of Capital

The WACC of Dymatic Chemicals Inc (002054.SZ) is 9.0%.

The Cost of Equity of Dymatic Chemicals Inc (002054.SZ) is 14.30%.
The Cost of Debt of Dymatic Chemicals Inc (002054.SZ) is 5.00%.

Range Selected
Cost of equity 12.50% - 16.10% 14.30%
Tax rate 25.00% - 25.00% 25.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.1% - 9.9% 9.0%
WACC

002054.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.61 1.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.50% 16.10%
Tax rate 25.00% 25.00%
Debt/Equity ratio 1.02 1.02
Cost of debt 5.00% 5.00%
After-tax WACC 8.1% 9.9%
Selected WACC 9.0%

002054.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 002054.SZ:

cost_of_equity (14.30%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.61) + 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.