300138.SZ WACC - Weighted Average Cost of Capital
The WACC of Chenguang Biotech Group Co Ltd (300138.SZ) is 9.4%.
| Range | Selected | |
| Cost of equity | 11.2% - 15.2% | 13.2% |
| Tax rate | 12.6% - 13.8% | 13.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.3% - 10.5% | 9.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.39 | 1.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.2% | 15.2% |
| Tax rate | 12.6% | 13.8% |
| Debt/Equity ratio | 0.75 | 0.75 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.3% | 10.5% |
| Selected WACC | 9.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300138.SZ | Chenguang Biotech Group Co Ltd | 0.75 | 1.26 | 0.76 |
| 000716.SZ | Nanfang Black Sesame Group Co Ltd | 0.31 | 1.92 | 1.52 |
| 002570.SZ | Beingmate Co Ltd | 0.19 | 1 | 0.86 |
| 002582.SZ | Haoxiangni Health Food Co Ltd | 0.19 | 1.52 | 1.31 |
| 002661.SZ | Kemen Noodle Manufacturing Co Ltd | 0.78 | 0.96 | 0.57 |
| 002695.SZ | Jiangxi Huangshanghuang Group Food Co Ltd | 0.01 | 1.34 | 1.33 |
| 600127.SS | Jinjian Cereals Industry Co Ltd | 0.16 | 0.61 | 0.53 |
| 600300.SS | V V Food & Beverage Co Ltd | 0.04 | 1.1 | 1.06 |
| 603711.SS | Xiangpiaopiao Food Co Ltd | 0.12 | 1.59 | 1.44 |
| 603886.SS | Ganso Co Ltd | 0.11 | 1.13 | 1.04 |
| Low | High | |
| Unlevered beta | 0.96 | 1.16 |
| Relevered beta | 1.58 | 1.91 |
| Adjusted relevered beta | 1.39 | 1.61 |
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 (13.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.39) + 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.