002487.SZ WACC - Weighted Average Cost of Capital
The WACC of Dajin Heavy Industry Corp (002487.SZ) is 9.2%.
| Range | Selected | |
| Cost of equity | 8.4% - 11.0% | 9.7% |
| Tax rate | 13.3% - 14.2% | 13.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 10.4% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.93 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 11.0% |
| Tax rate | 13.3% | 14.2% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 10.4% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002487.SZ | Dajin Heavy Industry Corp | 0.09 | 1.05 | 0.97 |
| 002169.SZ | Guangzhou Zhiguang Electric Co Ltd | 0.58 | 1.42 | 0.95 |
| 002358.SZ | Henan Senyuan Electric Co Ltd | 0.46 | 1.08 | 0.78 |
| 300011.SZ | Beijing Dinghan Technology Group Co Ltd | 0.36 | 1.33 | 1.01 |
| 300129.SZ | Shanghai Taisheng Wind Power Equipment Co Ltd | 0.52 | 1.07 | 0.74 |
| 300222.SZ | Csg Smart Science&Technology Co Ltd | 0.13 | 1.2 | 1.08 |
| 300477.SZ | Beijing Hezong Science&Technology Co Ltd | 1.41 | 1.85 | 0.84 |
| 300510.SZ | Jilin Jinguan Electric Co Ltd | 0.2 | 1.23 | 1.05 |
| 300569.SZ | Qingdao Tianneng Heavy Industries Co Ltd | 1 | 1.31 | 0.71 |
| 601218.SS | Jiangsu SINOJIT Wind Energy Technology Co Ltd | 0.14 | 0.93 | 0.83 |
| Low | High | |
| Unlevered beta | 0.83 | 0.96 |
| Relevered beta | 0.9 | 1.03 |
| Adjusted relevered beta | 0.93 | 1.02 |
002487.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 002487.SZ:
cost_of_equity (9.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.93) + 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.