002136.SZ
AnHui Annada Titanium Industry Co Ltd
Price:  
10.97 
CNY
Volume:  
34,213,790.00
China | Chemicals
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002136.SZ WACC - Weighted Average Cost of Capital

The WACC of AnHui Annada Titanium Industry Co Ltd (002136.SZ) is 9.4%.

The Cost of Equity of AnHui Annada Titanium Industry Co Ltd (002136.SZ) is 10.20%.
The Cost of Debt of AnHui Annada Titanium Industry Co Ltd (002136.SZ) is 5.00%.

Range Selected
Cost of equity 9.00% - 11.40% 10.20%
Tax rate 7.30% - 7.60% 7.45%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.4% - 10.4% 9.4%
WACC

002136.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.03 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 11.40%
Tax rate 7.30% 7.60%
Debt/Equity ratio 0.18 0.18
Cost of debt 5.00% 5.00%
After-tax WACC 8.4% 10.4%
Selected WACC 9.4%

002136.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 002136.SZ:

cost_of_equity (10.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.03) + 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.