002225.SZ WACC - Weighted Average Cost of Capital
The WACC of Puyang Refractories Group Co Ltd (002225.SZ) is 7.9%.
| Range | Selected | |
| Cost of equity | 8.9% - 11.1% | 10% |
| Tax rate | 8.6% - 10.7% | 9.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.3% - 8.6% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.01 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 11.1% |
| Tax rate | 8.6% | 10.7% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.3% | 8.6% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002225.SZ | Puyang Refractories Group Co Ltd | 0.59 | 1.01 | 0.66 |
| 000637.SZ | Maoming Petro-Chemical Shihua Co Ltd | 0.57 | 0.95 | 0.63 |
| 000822.SZ | SHANDONG HAIHUA Co Ltd | 0.36 | 1.1 | 0.83 |
| 000949.SZ | Xinxiang Chemical Fiber Co Ltd | 0.74 | 1.11 | 0.67 |
| 002037.SZ | Poly Union Chemical Holding Group Co Ltd | 2.16 | 1.15 | 0.39 |
| 002206.SZ | Zhejiang Hailide New Material Co Ltd | 0.41 | 1.02 | 0.75 |
| 002584.SZ | Xilong Scientific Co Ltd | 0.29 | 0.92 | 0.73 |
| 002986.SZ | Hunan Yussen Energy Technology Co Ltd | 0.62 | 1.03 | 0.66 |
| 603299.SS | JiangSu Suyan Jingshen Co Ltd | 0.23 | 0.76 | 0.63 |
| 603612.SS | Sunstone Development Co Ltd | 0.93 | 1.39 | 0.76 |
| Low | High | |
| Unlevered beta | 0.66 | 0.69 |
| Relevered beta | 1.01 | 1.06 |
| Adjusted relevered beta | 1.01 | 1.04 |
002225.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 002225.SZ:
cost_of_equity (10.00%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.01) + 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.