300591.SZ WACC - Weighted Average Cost of Capital
The WACC of Guangdong Wanlima Industry Co Ltd (300591.SZ) is 8.6%.
| Range | Selected | |
| Cost of equity | 6.9% - 10.8% | 8.85% |
| Tax rate | 3.7% - 5.8% | 4.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.8% - 10.4% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.69 | 1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 10.8% |
| Tax rate | 3.7% | 5.8% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.8% | 10.4% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300591.SZ | Guangdong Wanlima Industry Co Ltd | 0.07 | 1.59 | 1.49 |
| 002494.SZ | Huasi Holding Co Ltd | 0.14 | 0.96 | 0.85 |
| 002634.SZ | Zhejiang Bangjie Holding Group Co Ltd | 0.78 | 1.38 | 0.79 |
| 002762.SZ | Jinfa Labi Maternity & Baby Articles Co Ltd | 0.01 | 1.3 | 1.29 |
| 1027.HK | China Jicheng Holdings Ltd | 0.21 | 0.1 | 0.08 |
| 1247.HK | Miko International Holdings Ltd | 0.06 | -0.59 | -0.56 |
| 1425.HK | Justin Allen Holdings Ltd | 0.03 | 0.09 | 0.08 |
| 1906.HK | Bonny International Holding Ltd | 0.36 | -0.47 | -0.35 |
| 600107.SS | Hubei Mailyard Share Co Ltd | 0.14 | 1.53 | 1.35 |
| 603665.SS | ZheJiang KangLongDa Special Protection Technology Co Ltd | 0.33 | 1.4 | 1.06 |
| Low | High | |
| Unlevered beta | 0.51 | 0.94 |
| Relevered beta | 0.54 | 1 |
| Adjusted relevered beta | 0.69 | 1 |
300591.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 300591.SZ:
cost_of_equity (8.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.69) + 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.