002637.SZ WACC - Weighted Average Cost of Capital
The WACC of Zanyu Technology Group Co Ltd (002637.SZ) is 7.1%.
| Range | Selected | |
| Cost of equity | 8.3% - 10.7% | 9.5% |
| Tax rate | 33.6% - 47.7% | 40.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.4% - 7.7% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.91 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 10.7% |
| Tax rate | 33.6% | 47.7% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.4% | 7.7% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002637.SZ | Zanyu Technology Group Co Ltd | 0.59 | 0.93 | 0.68 |
| 002002.SZ | Hongda Xingye Co Ltd | 2.78 | 1.51 | 0.56 |
| 002037.SZ | Poly Union Chemical Holding Group Co Ltd | 2.16 | 1.15 | 0.5 |
| 002068.SZ | Jiangxi Black Cat Carbon Black Inc Ltd | 0.52 | 1.88 | 1.43 |
| 002641.SZ | Yonggao Co Ltd | 0.27 | 1.1 | 0.95 |
| 002768.SZ | Qingdao Gon Technology Co Ltd | 1.08 | 0.93 | 0.56 |
| 600063.SS | Anhui Wanwei Updated High-tech Material Industry Co Ltd | 0.58 | 1.05 | 0.77 |
| 600075.SS | Xinjiang Tianye Co Ltd | 0.98 | 0.91 | 0.57 |
| 600618.SS | Shanghai Chlor-Alkali Chemical Co Ltd | 0.12 | 0.76 | 0.71 |
| 601678.SS | Befar Group Co Ltd | 1.11 | 1.26 | 0.75 |
| Low | High | |
| Unlevered beta | 0.64 | 0.73 |
| Relevered beta | 0.87 | 0.99 |
| Adjusted relevered beta | 0.91 | 0.99 |
002637.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 002637.SZ:
cost_of_equity (9.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.91) + 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.