002582.SZ
Haoxiangni Health Food Co Ltd
Price:  
11.40 
CNY
Volume:  
44,431,400.00
China | Food Products
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002582.SZ WACC - Weighted Average Cost of Capital

The WACC of Haoxiangni Health Food Co Ltd (002582.SZ) is 7.2%.

The Cost of Equity of Haoxiangni Health Food Co Ltd (002582.SZ) is 7.75%.
The Cost of Debt of Haoxiangni Health Food Co Ltd (002582.SZ) is 5.00%.

Range Selected
Cost of equity 6.60% - 8.90% 7.75%
Tax rate 12.50% - 15.00% 13.75%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.3% - 8.2% 7.2%
WACC

002582.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.64 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 8.90%
Tax rate 12.50% 15.00%
Debt/Equity ratio 0.18 0.18
Cost of debt 5.00% 5.00%
After-tax WACC 6.3% 8.2%
Selected WACC 7.2%

002582.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 002582.SZ:

cost_of_equity (7.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.64) + 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.