002215.SZ WACC - Weighted Average Cost of Capital
The WACC of Shenzhen Noposion Agrochemicals Co Ltd (002215.SZ) is 7.6%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.5% | 9.15% |
| Tax rate | 5.5% - 7.4% | 6.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.8% - 8.5% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.84 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.5% |
| Tax rate | 5.5% | 7.4% |
| Debt/Equity ratio | 0.51 | 0.51 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.8% | 8.5% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002215.SZ | Shenzhen Noposion Agrochemicals Co Ltd | 0.51 | 0.77 | 0.52 |
| 000525.SZ | Nanjing Red Sun Co Ltd | 0.12 | -0.06 | -0.05 |
| 000731.SZ | Sichuan Meifeng Chemical Industry Co Ltd | 0.08 | 0.71 | 0.66 |
| 000912.SZ | Sichuan Lutianhua Co Ltd | 0.38 | 0.84 | 0.61 |
| 002391.SZ | Jiangsu Changqing Agrochemical Co Ltd | 0.9 | 0.88 | 0.48 |
| 002538.SZ | Anhui Sierte Fertilizer Industry Ltd Co | 0.01 | 0.86 | 0.85 |
| 002734.SZ | Limin Group Co Ltd | 0.32 | 0.66 | 0.51 |
| 600078.SS | Jiangsu Chengxing Phosph-Chemical Co Ltd | 0.57 | 1.23 | 0.8 |
| 600389.SS | Nantong Jiangshan Agrochemical & Chemicals Co Ltd | 0.3 | 0.98 | 0.76 |
| 600470.SS | Anhui Liuguo Chemical Co Ltd | 1.06 | 0.68 | 0.34 |
| Low | High | |
| Unlevered beta | 0.51 | 0.63 |
| Relevered beta | 0.76 | 0.94 |
| Adjusted relevered beta | 0.84 | 0.96 |
002215.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 002215.SZ:
cost_of_equity (9.15%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.84) + 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.