300340.SZ WACC - Weighted Average Cost of Capital
The WACC of Jiangmen Kanhoo Industry Co Ltd (300340.SZ) is 8.5%.
| Range | Selected | |
| Cost of equity | 8.7% - 12.4% | 10.55% |
| Tax rate | 16.3% - 24.4% | 20.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.3% - 9.7% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.98 | 1.23 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 12.4% |
| Tax rate | 16.3% | 24.4% |
| Debt/Equity ratio | 0.47 | 0.47 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.3% | 9.7% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300340.SZ | Jiangmen Kanhoo Industry Co Ltd | 0.47 | 0.93 | 0.68 |
| 002748.SZ | Jiangxi Selon Industrial Co Ltd | 0.29 | 0.57 | 0.47 |
| 002809.SZ | Guangdong Redwall New Materials Co Ltd | 0.17 | 1.17 | 1.03 |
| 1986.HK | Tsaker Chemical Group Ltd | 0.33 | 0.39 | 0.31 |
| 300437.SZ | Henan Qingshuiyuan Technology Co Ltd | 0.34 | 1.34 | 1.06 |
| 600367.SS | Guizhou Redstar Developing Co Ltd | 0.01 | 1.24 | 1.22 |
| 603188.SS | Jiangsu Yabang Dyestuff Ltd | 0.25 | 0.88 | 0.74 |
| 603519.SS | Jiangsu Liba Enterprise Joint-Stock Co Ltd | 0.05 | 1.18 | 1.14 |
| 603681.SS | Shanghai Yongguan Adhesive Products Corp Ltd | 1.22 | 1.15 | 0.6 |
| 603968.SS | Nantong Acetic Acid Chemical Co Ltd | 0.38 | 1.23 | 0.96 |
| Low | High | |
| Unlevered beta | 0.72 | 0.99 |
| Relevered beta | 0.97 | 1.34 |
| Adjusted relevered beta | 0.98 | 1.23 |
300340.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 300340.SZ:
cost_of_equity (10.55%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.98) + 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.