002910.SZ WACC - Weighted Average Cost of Capital
The WACC of Lanzhou Zhuangyuan Pasture Co Ltd (002910.SZ) is 6.8%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.5% | 8.1% |
| Tax rate | 6.9% - 9.6% | 8.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 7.7% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.65 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.5% |
| Tax rate | 6.9% | 9.6% |
| Debt/Equity ratio | 0.6 | 0.6 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 7.7% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002910.SZ | Lanzhou Zhuangyuan Pasture Co Ltd | 0.6 | 0.87 | 0.56 |
| 002086.SZ | Shandong Oriental Ocean Sci-Tech Co Ltd | 0.02 | 1.84 | 1.8 |
| 002719.SZ | Maiquer Group Co Ltd | 0.1 | 1.32 | 1.21 |
| 1262.HK | Labixiaoxin Snacks Group Ltd | 0.91 | 0.12 | 0.07 |
| 1583.HK | Qinqin Foodstuffs Group (Cayman) Company Ltd | 0.2 | 0.49 | 0.41 |
| 1676.HK | China Shenghai Group Ltd | 0.66 | -1.42 | -0.89 |
| 2226.HK | Honworld Group Ltd | 9.35 | 0.01 | 0 |
| 603696.SS | Anji Foodstuff Co Ltd | 0 | 1.26 | 1.26 |
| 829.HK | Shenguan Holdings (Group) Ltd | 0.3 | 0.3 | 0.24 |
| 926.HK | Besunyen Holdings Co Ltd | 0.03 | 0.37 | 0.36 |
| Low | High | |
| Unlevered beta | 0.31 | 0.47 |
| Relevered beta | 0.48 | 0.73 |
| Adjusted relevered beta | 0.65 | 0.82 |
002910.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 002910.SZ:
cost_of_equity (8.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.65) + 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.