2080.SR WACC - Weighted Average Cost of Capital
The WACC of National Gas and Industrialization Company SJSC (2080.SR) is 10.5%.
| Range | Selected | |
| Cost of equity | 9.3% - 11.9% | 10.6% |
| Tax rate | 6.4% - 6.6% | 6.5% |
| Cost of debt | 4.0% - 6.5% | 5.25% |
| WACC | 9.2% - 11.8% | 10.5% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.55 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 11.9% |
| Tax rate | 6.4% | 6.6% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 6.5% |
| After-tax WACC | 9.2% | 11.8% |
| Selected WACC | 10.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2080.SR | National Gas and Industrialization Company SJSC | 0.02 | 0.93 | 0.91 |
| 034590.KS | Incheon City Gas Co Ltd | 0.17 | 0.08 | 0.07 |
| 117580.KS | Daesung Energy Co Ltd | 0.53 | 0.55 | 0.37 |
| 1663.T | K&O Energy Group Inc | 0.01 | 1.22 | 1.21 |
| 2886.HK | Binhai Investment Co Ltd | 2.38 | 0.44 | 0.14 |
| 3361.T | Toell Co Ltd | 0.07 | 0.28 | 0.26 |
| 600681.SS | Bestsun Energy Co Ltd | 0.38 | 0.76 | 0.56 |
| 603393.SS | Xinjiang Xintai Natural Gas Co Ltd | 0.37 | 0.73 | 0.54 |
| 7200.SR | Al Moammar Information Systems Co CJSC | 0.21 | 0.72 | 0.6 |
| 9537.T | Hokuriku Gas Co Ltd | 0.01 | 0.14 | 0.14 |
| Low | High | |
| Unlevered beta | 0.33 | 0.55 |
| Relevered beta | 0.33 | 0.55 |
| Adjusted relevered beta | 0.55 | 0.7 |
2080.SR'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 2080.SR:
cost_of_equity (10.60%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.55) + 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.