300498.SZ WACC - Weighted Average Cost of Capital
The WACC of Wens Foodstuff Group Co Ltd (300498.SZ) is 8.5%.
| Range | Selected | |
| Cost of equity | 8.2% - 10.5% | 9.35% |
| Tax rate | 2.0% - 3.0% | 2.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.6% - 9.4% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.9 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 10.5% |
| Tax rate | 2.0% | 3.0% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.6% | 9.4% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300498.SZ | Wens Foodstuff Group Co Ltd | 0.24 | 1.14 | 0.93 |
| 002124.SZ | Tech-bank Food Co Ltd | 0.92 | 0.75 | 0.39 |
| 002234.SZ | Shandong Minhe Animal Husbandry Co Ltd | 0.54 | 1.12 | 0.73 |
| 002458.SZ | Shandong Yisheng Livestock & Poultry Breeding Co Ltd | 0.24 | 0.86 | 0.7 |
| 002505.SZ | Pengdu Agriculture & Animal Husbandry Co Ltd | 1.62 | 1.76 | 0.69 |
| 002746.SZ | Shandong Xiantan Co Ltd | 0.37 | 1.07 | 0.78 |
| 1610.HK | COFCO Joycome Foods Ltd | 1.05 | 0.86 | 0.43 |
| 300094.SZ | Zhanjiang Guolian Aquatic Products Co Ltd | 0.41 | 1.83 | 1.31 |
| 300761.SZ | Jiangsu Lihua Animal Husbandry Co Ltd | 0.14 | 1.35 | 1.18 |
| 600975.SS | Hunan New Wellful Co Ltd | 1.05 | 1.27 | 0.63 |
| Low | High | |
| Unlevered beta | 0.69 | 0.75 |
| Relevered beta | 0.85 | 0.93 |
| Adjusted relevered beta | 0.9 | 0.95 |
300498.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 300498.SZ:
cost_of_equity (9.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.9) + 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.