002448.SZ WACC - Weighted Average Cost of Capital
The WACC of ZYNP Corp (002448.SZ) is 9.0%.
| Range | Selected | |
| Cost of equity | 8.7% - 11.4% | 10.05% |
| Tax rate | 9.4% - 11.1% | 10.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.9% - 10.1% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.98 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 11.4% |
| Tax rate | 9.4% | 11.1% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.9% | 10.1% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002448.SZ | ZYNP Corp | 0.2 | 1.29 | 1.09 |
| 002031.SZ | Greatoo Intelligent Equipment Inc | 0.06 | 1.69 | 1.6 |
| 002363.SZ | Shandong Longji Machinery Co Ltd | 0.15 | 1.13 | 1 |
| 300176.SZ | GuangDong PaiSheng Intelligent Technology Co Ltd | 0.29 | 0.92 | 0.73 |
| 603085.SS | Zhejiang Tiancheng Controls Co Ltd | 0.29 | 1.14 | 0.91 |
| 603161.SS | Kehua Holdings Co Ltd | 0.43 | 0.88 | 0.63 |
| 603166.SS | Guilin Fuda Co Ltd | 0.12 | 1.41 | 1.27 |
| 603586.SS | Shandong Gold Phoenix Co Ltd | 0.03 | 0.87 | 0.85 |
| 603768.SS | Changqing Machinery Co Ltd | 0.75 | 1.07 | 0.64 |
| 603982.SS | Nanjing Chervon Auto Precision Technology Co Ltd | 1.5 | 1.41 | 0.6 |
| Low | High | |
| Unlevered beta | 0.8 | 0.94 |
| Relevered beta | 0.97 | 1.12 |
| Adjusted relevered beta | 0.98 | 1.08 |
002448.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 002448.SZ:
cost_of_equity (10.05%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.98) + 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.