002674.SZ WACC - Weighted Average Cost of Capital
The WACC of Xingye Leather Technology Co Ltd (002674.SZ) is 9.7%.
| Range | Selected | |
| Cost of equity | 10.0% - 13.2% | 11.6% |
| Tax rate | 13.4% - 13.6% | 13.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.5% - 10.9% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.19 | 1.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.0% | 13.2% |
| Tax rate | 13.4% | 13.6% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.5% | 10.9% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002674.SZ | Xingye Leather Technology Co Ltd | 0.35 | 1.32 | 1.01 |
| 002193.SZ | Shandong Ruyi Woolen Garment Group Co Ltd | 0.79 | 1.11 | 0.66 |
| 002486.SZ | Shanghai Challenge Textile Co Ltd | 0.02 | 1.52 | 1.49 |
| 002516.SZ | Kuangda Technology Group Co Ltd | 0.01 | 1.21 | 1.19 |
| 300218.SZ | Anhui Anli Material Technology Co Ltd | 0.12 | 1.28 | 1.16 |
| 300658.SZ | Xiamen Yanjan New Material Co Ltd | 0.51 | 1.3 | 0.9 |
| 300918.SZ | Shandong Nanshan Zhishang Sci-Tech Co Ltd | 0.17 | 1.49 | 1.29 |
| 600232.SS | Zhejiang Golden Eagle Co Ltd | 0.19 | 1.03 | 0.89 |
| 600689.SS | Shanghai Sanmao Enterprise Group Co Ltd | 0.01 | 1.16 | 1.15 |
| 603238.SS | HangZhou Nbond Nonwovens Co Ltd | 0.16 | 1.07 | 0.95 |
| Low | High | |
| Unlevered beta | 0.99 | 1.15 |
| Relevered beta | 1.28 | 1.51 |
| Adjusted relevered beta | 1.19 | 1.34 |
002674.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 002674.SZ:
cost_of_equity (11.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.19) + 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.