300459.SZ WACC - Weighted Average Cost of Capital
The WACC of Zhejiang Jinke Culture Industry Co Ltd (300459.SZ) is 8.9%.
| Range | Selected | |
| Cost of equity | 8.0% - 10.5% | 9.25% |
| Tax rate | 5.6% - 5.7% | 5.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.8% - 10.0% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.87 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 10.5% |
| Tax rate | 5.6% | 5.7% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.8% | 10.0% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300459.SZ | Zhejiang Jinke Culture Industry Co Ltd | 0.08 | 1.63 | 1.51 |
| 002054.SZ | Dymatic Chemicals Inc | 0.91 | 1.06 | 0.57 |
| 002741.SZ | Guangdong Guanghua Sci-Tech Co Ltd | 0.15 | 0.86 | 0.76 |
| 300054.SZ | Hubei Dinglong Co Ltd | 0.06 | 1.12 | 1.06 |
| 300225.SZ | Shanghai Kinlita Chemical Co Ltd | 0.18 | 0.86 | 0.74 |
| 300398.SZ | Shanghai Phichem Material Co Ltd | 0.15 | 1.41 | 1.23 |
| 300715.SZ | Jiangsu Canlon Building Materials Co Ltd | 0.56 | 1.12 | 0.73 |
| 300910.SZ | Xinxiang Richful Lube Additive Co Ltd | 0.03 | 0.9 | 0.87 |
| 603378.SS | Asia Cuanon Technology Shanghai Co Ltd | 1.16 | 0.84 | 0.4 |
| 605008.SS | Ningbo Changhong Polymer Scientific & Technical Inc | 0.27 | 1.08 | 0.86 |
| Low | High | |
| Unlevered beta | 0.75 | 0.86 |
| Relevered beta | 0.81 | 0.93 |
| Adjusted relevered beta | 0.87 | 0.95 |
300459.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 300459.SZ:
cost_of_equity (9.25%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.87) + 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.