002699.SZ WACC - Weighted Average Cost of Capital
The WACC of Meisheng Cultural & Creative Corp Ltd (002699.SZ) is 7.5%.
| Range | Selected | |
| Cost of equity | 6.9% - 11.4% | 9.15% |
| Tax rate | 0.9% - 2.0% | 1.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 8.8% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.69 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 11.4% |
| Tax rate | 0.9% | 2.0% |
| Debt/Equity ratio | 0.66 | 0.66 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 8.8% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002699.SZ | Meisheng Cultural & Creative Corp Ltd | 0.66 | 0.94 | 0.57 |
| 000982.SZ | Ningxia Zhongyin Cashmere Co Ltd | 0.23 | 1.43 | 1.16 |
| 002569.SZ | Zhejiang Busen Garments Co Ltd | 0.02 | -0.1 | -0.1 |
| 003016.SZ | Xin Hee Co Ltd | 0.1 | 0.92 | 0.84 |
| 1146.HK | China Outfitters Holdings Ltd | 0.06 | 0.2 | 0.18 |
| 2399.HK | China Fordoo Holdings Ltd | 0.63 | 0.14 | 0.09 |
| 300577.SZ | Anhui Korrun Co Ltd | 0.29 | 1.26 | 0.98 |
| 603558.SS | Zhejiang Jasan Holding Group Co Ltd | 0.33 | 0.51 | 0.38 |
| 603665.SS | ZheJiang KangLongDa Special Protection Technology Co Ltd | 0.44 | 1.34 | 0.93 |
| 837.HK | Carpenter Tan Holdings Ltd | 0.01 | 0.24 | 0.24 |
| Low | High | |
| Unlevered beta | 0.33 | 0.68 |
| Relevered beta | 0.54 | 1.12 |
| Adjusted relevered beta | 0.69 | 1.08 |
002699.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 002699.SZ:
cost_of_equity (9.15%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.69) + 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.