300589.SZ WACC - Weighted Average Cost of Capital
The WACC of Jianglong Shipbuilding Co Ltd (300589.SZ) is 10.2%.
| Range | Selected | |
| Cost of equity | 9.3% - 12.0% | 10.65% |
| Tax rate | 0.9% - 32.0% | 16.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.0% - 11.3% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.09 | 1.16 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 12.0% |
| Tax rate | 0.9% | 32.0% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.0% | 11.3% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300589.SZ | Jianglong Shipbuilding Co Ltd | 0.08 | 1.12 | 1.04 |
| 300099.SZ | Uroica Precision Information Engineering Co Ltd | 0 | 1.49 | 1.49 |
| 300103.SZ | Dagang Holding Group Co Ltd | 0.07 | 1.11 | 1.04 |
| 300837.SZ | Zhejiang ZheKuang Heavy Industry Co Ltd | 0.17 | 1.38 | 1.18 |
| 300865.SZ | Chengdu Dahongli Machinery Co Ltd | 0.01 | 1.67 | 1.65 |
| 300923.SZ | Yeal Electric Co Ltd | 0.01 | 1.06 | 1.05 |
| 603966.SS | Eurocrane China Co Ltd | 0.22 | 1.2 | 0.98 |
| 605100.SS | Power HF Co Ltd | 0.06 | 0.65 | 0.61 |
| 688033.SS | Beijing Tianyishangjia New Material Corp Ltd | 0.37 | 1.88 | 1.38 |
| 688569.SS | Beijing Tieke Shougang Railway Tech Co Ltd | 0.02 | 1.15 | 1.13 |
| Low | High | |
| Unlevered beta | 1.05 | 1.15 |
| Relevered beta | 1.13 | 1.24 |
| Adjusted relevered beta | 1.09 | 1.16 |
300589.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 300589.SZ:
cost_of_equity (10.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.09) + 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.