300107.SZ WACC - Weighted Average Cost of Capital
The WACC of Hebei Jianxin Chemical Co Ltd (300107.SZ) is 9.5%.
| Range | Selected | |
| Cost of equity | 8.3% - 10.9% | 9.6% |
| Tax rate | 9.6% - 11.2% | 10.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.2% - 10.8% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.91 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 10.9% |
| Tax rate | 9.6% | 11.2% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.2% | 10.8% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300107.SZ | Hebei Jianxin Chemical Co Ltd | 0.02 | 1.42 | 1.39 |
| 002909.SZ | Guangzhou Jointas Chemical Co Ltd | 0.31 | 1.23 | 0.96 |
| 002915.SZ | Zhejiang Zhongxin Fluoride Materials Co Ltd | 0.21 | 1.3 | 1.1 |
| 300537.SZ | Jiangsu Kuangshun Photosensitivity New-Material Stock Co Ltd | 0.06 | 1.42 | 1.35 |
| 300644.SZ | Nanjing Julong Science & Technology Co Ltd | 0.31 | 1.38 | 1.08 |
| 603188.SS | Jiangsu Yabang Dyestuff Ltd | 0.26 | 0.84 | 0.68 |
| 603663.SS | Sanxiang Advanced Materials Co Ltd | 0.04 | 0.9 | 0.86 |
| 603683.SS | Shanghai Smith Adhesive New Material Co Ltd | 0.2 | 0.99 | 0.84 |
| 603790.SS | Argus Shanghai Textile Chemicals Co Ltd | 0.06 | 0.86 | 0.81 |
| 603991.SS | Shanghai Original Advanced Compounds Co Ltd | 0.03 | 0.15 | 0.15 |
| Low | High | |
| Unlevered beta | 0.85 | 1.01 |
| Relevered beta | 0.87 | 1.03 |
| Adjusted relevered beta | 0.91 | 1.02 |
300107.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 300107.SZ:
cost_of_equity (9.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.91) + 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.