002641.SZ WACC - Weighted Average Cost of Capital
The WACC of Yonggao Co Ltd (002641.SZ) is 8.0%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.0% | 8.95% |
| Tax rate | 9.8% - 11.1% | 10.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.2% - 8.9% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.85 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.0% |
| Tax rate | 9.8% | 11.1% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.2% | 8.9% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002641.SZ | Yonggao Co Ltd | 0.26 | 1.1 | 0.89 |
| 000683.SZ | Inner Mongolia Yuan Xing Energy Co Ltd | 0.52 | 1.43 | 0.97 |
| 002002.SZ | Hongda Xingye Co Ltd | 2.78 | 1.51 | 0.43 |
| 002068.SZ | Jiangxi Black Cat Carbon Black Inc Ltd | 0.53 | 1.92 | 1.29 |
| 002637.SZ | Zanyu Technology Group Co Ltd | 0.6 | 0.93 | 0.6 |
| 002768.SZ | Qingdao Gon Technology Co Ltd | 1.21 | 0.94 | 0.45 |
| 600063.SS | Anhui Wanwei Updated High-tech Material Industry Co Ltd | 0.58 | 1.06 | 0.69 |
| 600618.SS | Shanghai Chlor-Alkali Chemical Co Ltd | 0.15 | 0.76 | 0.67 |
| 600792.SS | Yunnan Coal & Energy Co Ltd | 0.8 | 1.06 | 0.62 |
| 601678.SS | Befar Group Co Ltd | 1.13 | 1.26 | 0.63 |
| Low | High | |
| Unlevered beta | 0.62 | 0.68 |
| Relevered beta | 0.78 | 0.84 |
| Adjusted relevered beta | 0.85 | 0.89 |
002641.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 002641.SZ:
cost_of_equity (8.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.85) + 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.