002529.SZ WACC - Weighted Average Cost of Capital
The WACC of Fujian Haiyuan Composites Technology Co Ltd (002529.SZ) is 9.2%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.3% | 9.9% |
| Tax rate | 3.9% - 5.7% | 4.8% |
| 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 | 0.95 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.3% |
| Tax rate | 3.9% | 5.7% |
| Debt/Equity ratio | 0.17 | 0.17 |
| 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 |
| 002529.SZ | Fujian Haiyuan Composites Technology Co Ltd | 0.17 | 1.33 | 1.14 |
| 000595.SZ | Baota Industry Co Ltd | 0.08 | 0.85 | 0.8 |
| 002667.SZ | AnShan Heavy Duty Mining Machinery Co Ltd | 0.21 | 0.83 | 0.69 |
| 002816.SZ | Shenzhen HeKeda Precision Cleaning Equipment Co Ltd | 0.02 | 0.5 | 0.49 |
| 002871.SZ | Qingdao Weflo Valve Co Ltd | 0.11 | 0.89 | 0.81 |
| 002903.SZ | Yuhuan CNC Machine Tool Co Ltd | 0.03 | 1.24 | 1.2 |
| 300069.SZ | Zhejiang Jinlihua Electric Co Ltd | 0.07 | 1.01 | 0.95 |
| 300275.SZ | Chongqing Mas Sci & Tech Co Ltd | 0.05 | 1.18 | 1.12 |
| 300345.SZ | Hunan Huamin Holdings Co Ltd | 0.23 | 1.17 | 0.96 |
| 603895.SS | Shanghai Tianyong Engineering Co Ltd | 0.18 | 0.91 | 0.78 |
| Low | High | |
| Unlevered beta | 0.8 | 0.95 |
| Relevered beta | 0.93 | 1.1 |
| Adjusted relevered beta | 0.95 | 1.07 |
002529.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 002529.SZ:
cost_of_equity (9.90%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.