300495.SZ WACC - Weighted Average Cost of Capital
The WACC of Misho Ecology & Landscape Co Ltd (300495.SZ) is 5.6%.
| Range | Selected | |
| Cost of equity | 18.9% - 37.5% | 28.2% |
| Tax rate | 10.8% - 16.7% | 13.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 5.9% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 2.65 | 4.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 18.9% | 37.5% |
| Tax rate | 10.8% | 16.7% |
| Debt/Equity ratio | 18.05 | 18.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 5.9% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300495.SZ | Misho Ecology & Landscape Co Ltd | 18.05 | 0.09 | 0.01 |
| 000544.SZ | Central Plains Environment Protection Co Ltd | 2.87 | 1.01 | 0.29 |
| 1272.HK | Datang Environment Industry Group Co Ltd | 1.29 | 0.61 | 0.29 |
| 2377.HK | China Boqi Environmental Holding Co Ltd | 0.75 | 0.93 | 0.56 |
| 300692.SZ | Anhui Zhonghuan Environmental Protection Technology Co Ltd | 1.23 | 1.55 | 0.76 |
| 3718.HK | Beijing Enterprises Urban Resources Group Ltd | 2.14 | 0.26 | 0.09 |
| 603007.SS | Flower King Eco-Engineering Inc | 0.04 | -0.14 | -0.13 |
| 603126.SS | Sinoma Energy Conservation Ltd | 0.27 | 0.7 | 0.57 |
| 603359.SS | Dongzhu Ecological Environment Protection Co Ltd | 0.25 | 1.11 | 0.92 |
| 603603.SS | Poten Environment Group Co Ltd | 6.92 | 0.5 | 0.07 |
| Low | High | |
| Unlevered beta | 0.21 | 0.4 |
| Relevered beta | 3.46 | 6.58 |
| Adjusted relevered beta | 2.65 | 4.74 |
300495.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 300495.SZ:
cost_of_equity (28.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (2.65) + 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.