002378.SZ WACC - Weighted Average Cost of Capital
The WACC of Chongyi Zhangyuan Tungsten Co Ltd (002378.SZ) is 9.7%.
| Range | Selected | |
| Cost of equity | 9.6% - 12.4% | 11% |
| Tax rate | 10.0% - 12.6% | 11.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.6% - 10.8% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.13 | 1.23 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 12.4% |
| Tax rate | 10.0% | 12.6% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.6% | 10.8% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002378.SZ | Chongyi Zhangyuan Tungsten Co Ltd | 0.24 | 1.12 | 0.92 |
| 000426.SZ | Inner Mongolia Xingye Mining Co Ltd | 0.06 | 1.48 | 1.41 |
| 000603.SZ | Shengda Resources Co Ltd | 0.16 | 0.97 | 0.85 |
| 000688.SZ | Guocheng Mining Co Ltd | 0.22 | 1.41 | 1.18 |
| 000762.SZ | Tibet Mineral Development Co Ltd | 0.13 | 1.29 | 1.16 |
| 002738.SZ | Sinomine Resource Group Co Ltd | 0.1 | 1.16 | 1.06 |
| 3833.HK | Xinjiang Xinxin Mining Industry Co Ltd | 0.51 | 0.84 | 0.58 |
| 3939.HK | Wanguo International Mining Group Ltd | 0.01 | 0.04 | 0.04 |
| 601020.SS | Tibet Huayu Mining Co Ltd | 0.05 | 1.37 | 1.31 |
| 603979.SS | JCHX Mining Management Co Ltd | 0.17 | 1.18 | 1.02 |
| Low | High | |
| Unlevered beta | 0.98 | 1.1 |
| Relevered beta | 1.19 | 1.34 |
| Adjusted relevered beta | 1.13 | 1.23 |
002378.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 002378.SZ:
cost_of_equity (11.00%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.13) + 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.