002958.SZ WACC - Weighted Average Cost of Capital
The WACC of Qingdao Rural Commercial Bank Corp (002958.SZ) is 5.2%.
| Range | Selected | |
| Cost of equity | 8.6% - 11.3% | 9.95% |
| Tax rate | 10.7% - 13.8% | 12.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 5.4% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.97 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 11.3% |
| Tax rate | 10.7% | 13.8% |
| Debt/Equity ratio | 5.73 | 5.73 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 5.4% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002958.SZ | Qingdao Rural Commercial Bank Corp | 5.73 | 1.09 | 0.18 |
| 002966.SZ | Bank of Suzhou Co Ltd | 3.25 | 0.69 | 0.18 |
| 1963.HK | Bank of Chongqing Co Ltd | 2.27 | 0.85 | 0.29 |
| 2139.HK | Bank of Gansu Co Ltd | 11.05 | 1.17 | 0.11 |
| 600908.SS | Wuxi Rural Commercial Bank Co Ltd | 0.94 | 1.02 | 0.57 |
| 600928.SS | Bank of Xi'An Co Ltd | 5.83 | 1.15 | 0.19 |
| 601128.SS | Jiangsu Changshu Rural Commercial Bank Co Ltd | 1.59 | 0.74 | 0.31 |
| 601187.SS | Xiamen Bank Co Ltd | 6.74 | 0.89 | 0.13 |
| 6190.HK | Bank of Jiujiang Co Ltd | 7.31 | -0.09 | -0.01 |
| 9677.HK | Weihai City Commercial Bank Co Ltd | 4.53 | 0.01 | 0 |
| Low | High | |
| Unlevered beta | 0.16 | 0.19 |
| Relevered beta | 0.96 | 1.1 |
| Adjusted relevered beta | 0.97 | 1.07 |
002958.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 002958.SZ:
cost_of_equity (9.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.97) + 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.