002182.SZ WACC - Weighted Average Cost of Capital
The WACC of Nanjing Yunhai Special Metals Co Ltd (002182.SZ) is 9.7%.
| Range | Selected | |
| Cost of equity | 11.0% - 13.9% | 12.45% |
| Tax rate | 11.9% - 13.1% | 12.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.8% - 10.7% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.36 | 1.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.0% | 13.9% |
| Tax rate | 11.9% | 13.1% |
| Debt/Equity ratio | 0.51 | 0.51 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.8% | 10.7% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002182.SZ | Nanjing Yunhai Special Metals Co Ltd | 0.51 | 1.7 | 1.18 |
| 000657.SZ | China Tungsten and Hightech Materials Co Ltd | 0.23 | 1.18 | 0.99 |
| 000751.SZ | Huludao Zinc Industry Co Ltd | 0.98 | 1.04 | 0.56 |
| 000795.SZ | Innuovo Technology Co Ltd | 0.03 | 1.78 | 1.73 |
| 000969.SZ | Advanced Technology & Materials Co Ltd | 0.16 | 0.91 | 0.8 |
| 002716.SZ | Chenzhou City Jingui Silver Industry Co Ltd | 0.04 | 1.27 | 1.23 |
| 600331.SS | Sichuan Hongda Co Ltd | 0.04 | 1.15 | 1.11 |
| 601137.SS | Ningbo Boway Alloy Material Co Ltd | 0.41 | 1.23 | 0.9 |
| 605123.SS | Wuxi Paike New Materials Technology Co Ltd | 0.18 | 1.31 | 1.13 |
| 605376.SS | Jiangsu Boqian New Materials Stock Co Ltd | 0.01 | 1.68 | 1.67 |
| Low | High | |
| Unlevered beta | 1.06 | 1.15 |
| Relevered beta | 1.54 | 1.66 |
| Adjusted relevered beta | 1.36 | 1.44 |
002182.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 002182.SZ:
cost_of_equity (12.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.36) + 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.