002756.SZ
Yongxing Special Materials Technology Co Ltd
Price:  
32.75 
CNY
Volume:  
10,561,414
China | Metals & Mining

002756.SZ WACC - Weighted Average Cost of Capital

The WACC of Yongxing Special Materials Technology Co Ltd (002756.SZ) is 8.9%.

The Cost of Equity of Yongxing Special Materials Technology Co Ltd (002756.SZ) is 8.95%.
The Cost of Debt of Yongxing Special Materials Technology Co Ltd (002756.SZ) is 5%.

RangeSelected
Cost of equity7.9% - 10.0%8.95%
Tax rate15.7% - 16.5%16.1%
Cost of debt5.0% - 5.0%5%
WACC7.9% - 9.9%8.9%
WACC

002756.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.850.88
Additional risk adjustments0.0%0.5%
Cost of equity7.9%10.0%
Tax rate15.7%16.5%
Debt/Equity ratio
0.010.01
Cost of debt5.0%5.0%
After-tax WACC7.9%9.9%
Selected WACC8.9%

002756.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 002756.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.