002193.SZ WACC - Weighted Average Cost of Capital
The WACC of Shandong Ruyi Woolen Garment Group Co Ltd (002193.SZ) is 6.8%.
| Range | Selected | |
| Cost of equity | 6.1% - 12.1% | 9.1% |
| Tax rate | 1.5% - 44.2% | 22.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.6% - 8.0% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.56 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 12.1% |
| Tax rate | 1.5% | 44.2% |
| Debt/Equity ratio | 0.79 | 0.79 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.6% | 8.0% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002193.SZ | Shandong Ruyi Woolen Garment Group Co Ltd | 0.79 | 1.11 | 0.63 |
| 1968.HK | Hingtex Holdings Ltd | 0.51 | 0.31 | 0.2 |
| 3778.HK | China Weaving Materials Holdings Ltd | 1.1 | 0.39 | 0.19 |
| 528.HK | Kingdom Holdings Ltd | 1.42 | 0.01 | 0.01 |
| 600156.SS | Hunan Huasheng Co Ltd | 0.09 | 0.92 | 0.85 |
| 600232.SS | Zhejiang Golden Eagle Co Ltd | 0.19 | 1.03 | 0.87 |
| 600493.SS | Fujian Fynex Textile Science & Technology Co Ltd | 0.22 | 1.1 | 0.91 |
| 600689.SS | Shanghai Sanmao Enterprise Group Co Ltd | 0.01 | 1.16 | 1.15 |
| 8607.HK | Narnia (Hong Kong) Group Co Ltd | 1.81 | 0.38 | 0.14 |
| AWK.SI | Fuxing China Group Ltd | 11.53 | -0.69 | -0.06 |
| Low | High | |
| Unlevered beta | 0.2 | 0.72 |
| Relevered beta | 0.34 | 1.27 |
| Adjusted relevered beta | 0.56 | 1.18 |
002193.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 002193.SZ:
cost_of_equity (9.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.56) + 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.