002494.SZ WACC - Weighted Average Cost of Capital
The WACC of Huasi Holding Co Ltd (002494.SZ) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.2% - 8.6% | 6.9% |
| Tax rate | 16.0% - 23.2% | 19.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 8.1% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.41 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 8.6% |
| Tax rate | 16.0% | 23.2% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 8.1% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002494.SZ | Huasi Holding Co Ltd | 0.14 | 0.99 | 0.89 |
| 002569.SZ | Zhejiang Busen Garments Co Ltd | 0.02 | -0.02 | -0.02 |
| 002762.SZ | Jinfa Labi Maternity & Baby Articles Co Ltd | 0.01 | 1.31 | 1.3 |
| 1027.HK | China Jicheng Holdings Ltd | 0.22 | 0.07 | 0.06 |
| 1425.HK | Justin Allen Holdings Ltd | 0.03 | 0.12 | 0.11 |
| 1532.HK | China Partytime Culture Holdings Ltd | 0.12 | 0.12 | 0.11 |
| 1906.HK | Bonny International Holding Ltd | 0.33 | -0.41 | -0.32 |
| 300591.SZ | Guangdong Wanlima Industry Co Ltd | 0.07 | 1.61 | 1.52 |
| 600137.SS | Sichuan Langsha Holding Ltd | 0.03 | 0.98 | 0.96 |
| 837.HK | Carpenter Tan Holdings Ltd | 0.01 | 0.23 | 0.23 |
| Low | High | |
| Unlevered beta | 0.11 | 0.49 |
| Relevered beta | 0.12 | 0.55 |
| Adjusted relevered beta | 0.41 | 0.7 |
002494.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 002494.SZ:
cost_of_equity (6.90%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.41) + 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.