300145.SZ WACC - Weighted Average Cost of Capital
The WACC of Nanfang Zhongjin Environment Co Ltd (300145.SZ) is 9.7%.
| Range | Selected | |
| Cost of equity | 10.1% - 14.2% | 12.15% |
| Tax rate | 19.0% - 28.0% | 23.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.3% - 11.1% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.21 | 1.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 14.2% |
| Tax rate | 19.0% | 28.0% |
| Debt/Equity ratio | 0.42 | 0.42 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.3% | 11.1% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300145.SZ | Nanfang Zhongjin Environment Co Ltd | 0.42 | 1.83 | 1.41 |
| 000551.SZ | Create Technology & Science Co Ltd | 0.13 | 0.96 | 0.88 |
| 000811.SZ | Moon Environment Technology Co Ltd | 0.22 | 1.28 | 1.11 |
| 000837.SZ | Qinchuan Machine Tool & Tool Group Share Co Ltd | 0.12 | 1.53 | 1.41 |
| 002527.SZ | Shanghai STEP Electric Corp | 0.16 | 1.54 | 1.38 |
| 002630.SZ | China Western Power Industrial Co Ltd | 1.74 | 0.8 | 0.35 |
| 300230.SZ | Shanghai YongLi Belting Co Ltd | 0.17 | 1.64 | 1.46 |
| 300464.SZ | Guangdong SACA Precision Manufacturing Co Ltd | 0.28 | 1.52 | 1.26 |
| 600526.SS | Zhejiang Feida Environmental Science & Technology Co Ltd | 0.68 | 1.01 | 0.68 |
| 603169.SS | Lanzhou LS Heavy Equipment Co Ltd | 0.47 | 1.01 | 0.76 |
| Low | High | |
| Unlevered beta | 1.02 | 1.31 |
| Relevered beta | 1.31 | 1.7 |
| Adjusted relevered beta | 1.21 | 1.47 |
300145.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 300145.SZ:
cost_of_equity (12.15%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.21) + 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.