002265.SZ WACC - Weighted Average Cost of Capital
The WACC of Yunnan Xiyi Industrial Co Ltd (002265.SZ) is 8.9%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.6% | 9.25% |
| Tax rate | 5.7% - 10.5% | 8.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 10.2% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.85 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.6% |
| Tax rate | 5.7% | 10.5% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 10.2% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002265.SZ | Yunnan Xiyi Industrial Co Ltd | 0.08 | 0.94 | 0.87 |
| 002725.SZ | Zhejiang Yueling Co Ltd | 0.06 | 1.15 | 1.09 |
| 002865.SZ | Hainan Drinda Automotive Trim Co Ltd | 0.66 | 1.5 | 0.94 |
| 003033.SZ | Qingdao CHOHO Industrial Co Ltd | 0.16 | 0.83 | 0.73 |
| 2488.HK | Launch Tech Co Ltd | 0.35 | 0.18 | 0.14 |
| 300742.SZ | Nanjing YueBoo Power System Co Ltd | 41.71 | 1.41 | 0.04 |
| 600148.SS | Changchun Yidong Clutch Co Ltd | 0.07 | 0.54 | 0.5 |
| 600698.SS | Hunan Tyen Machinery Co Ltd | 0 | 0.72 | 0.72 |
| 603922.SS | Suzhou Jin Hong Shun Auto Parts Co Ltd | 0.08 | 1.12 | 1.04 |
| 605128.SS | Shanghai Yanpu Metal Products Co Ltd | 0.13 | 1.17 | 1.04 |
| Low | High | |
| Unlevered beta | 0.72 | 0.9 |
| Relevered beta | 0.78 | 0.97 |
| Adjusted relevered beta | 0.85 | 0.98 |
002265.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 002265.SZ:
cost_of_equity (9.25%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.85) + 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.