300138.SZ WACC - Weighted Average Cost of Capital
The WACC of Chenguang Biotech Group Co Ltd (300138.SZ) is 7.8%.
| Range | Selected | |
| Cost of equity | 8.8% - 12.9% | 10.85% |
| Tax rate | 12.6% - 13.8% | 13.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 8.9% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.01 | 1.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 12.9% |
| Tax rate | 12.6% | 13.8% |
| Debt/Equity ratio | 0.88 | 0.88 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 8.9% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300138.SZ | Chenguang Biotech Group Co Ltd | 0.88 | 1.36 | 0.77 |
| 000848.SZ | He Bei Cheng De LoLo Co Ltd | 0.02 | 0.88 | 0.87 |
| 000911.SZ | Nanning Sugar Industry Co Ltd | 1.24 | 0.68 | 0.33 |
| 002570.SZ | Beingmate Co Ltd | 0.2 | 1.13 | 0.96 |
| 002661.SZ | Kemen Noodle Manufacturing Co Ltd | 0.76 | 0.99 | 0.6 |
| 1230.HK | Yashili International Holdings Ltd | 0.11 | 0.07 | 0.07 |
| 600127.SS | Jinjian Cereals Industry Co Ltd | 0.16 | 0.61 | 0.53 |
| 600300.SS | V V Food & Beverage Co Ltd | 0.04 | 1.13 | 1.1 |
| 603711.SS | Xiangpiaopiao Food Co Ltd | 0.13 | 1.62 | 1.46 |
| 9977.HK | Shandong Fengxiang Co Ltd | 0.34 | 0.61 | 0.47 |
| Low | High | |
| Unlevered beta | 0.57 | 0.81 |
| Relevered beta | 1.01 | 1.43 |
| Adjusted relevered beta | 1.01 | 1.29 |
300138.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 300138.SZ:
cost_of_equity (10.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.01) + 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.