002634.SZ WACC - Weighted Average Cost of Capital
The WACC of Zhejiang Bangjie Holding Group Co Ltd (002634.SZ) is 8.5%.
| Range | Selected | |
| Cost of equity | 8.4% - 15.0% | 11.7% |
| Tax rate | 9.7% - 15.5% | 12.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 10.3% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.94 | 1.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 15.0% |
| Tax rate | 9.7% | 15.5% |
| Debt/Equity ratio | 0.78 | 0.78 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 10.3% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002634.SZ | Zhejiang Bangjie Holding Group Co Ltd | 0.78 | 1.4 | 0.84 |
| 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 |
| 1247.HK | Miko International Holdings Ltd | 0.06 | -0.57 | -0.54 |
| 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 |
| 300840.SZ | Qingdao Kutesmart Co Ltd | 0.06 | 1.44 | 1.38 |
| 600107.SS | Hubei Mailyard Share Co Ltd | 0.15 | 1.58 | 1.39 |
| 603665.SS | ZheJiang KangLongDa Special Protection Technology Co Ltd | 0.39 | 1.35 | 1.01 |
| Low | High | |
| Unlevered beta | 0.55 | 1.13 |
| Relevered beta | 0.91 | 1.88 |
| Adjusted relevered beta | 0.94 | 1.59 |
002634.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 002634.SZ:
cost_of_equity (11.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.94) + 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.