300658.SZ WACC - Weighted Average Cost of Capital
The WACC of Xiamen Yanjan New Material Co Ltd (300658.SZ) is 9.3%.
| Range | Selected | |
| Cost of equity | 10.2% - 13.5% | 11.85% |
| Tax rate | 11.4% - 18.0% | 14.7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.2% - 10.3% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.22 | 1.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.2% | 13.5% |
| Tax rate | 11.4% | 18.0% |
| Debt/Equity ratio | 0.51 | 0.51 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.2% | 10.3% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300658.SZ | Xiamen Yanjan New Material Co Ltd | 0.51 | 1.3 | 0.9 |
| 000955.SZ | Xinlong Holding Group Company Ltd | 0.03 | 1.67 | 1.62 |
| 002193.SZ | Shandong Ruyi Woolen Garment Group Co Ltd | 0.79 | 1.11 | 0.66 |
| 002486.SZ | Shanghai Challenge Textile Co Ltd | 0.02 | 1.52 | 1.49 |
| 002674.SZ | Xingye Leather Technology Co Ltd | 0.35 | 1.32 | 1.02 |
| 300819.SZ | Jiangsu Jujie Microfiber Technology Group Co Ltd | 0.01 | 1.29 | 1.27 |
| 300877.SZ | AnHui Jinchun Nonwoven Co Ltd | 0.07 | 1.25 | 1.19 |
| 600156.SS | Hunan Huasheng Co Ltd | 0.09 | 0.92 | 0.86 |
| 600232.SS | Zhejiang Golden Eagle Co Ltd | 0.19 | 1.03 | 0.89 |
| 603238.SS | HangZhou Nbond Nonwovens Co Ltd | 0.16 | 1.07 | 0.95 |
| Low | High | |
| Unlevered beta | 0.93 | 1.09 |
| Relevered beta | 1.33 | 1.55 |
| Adjusted relevered beta | 1.22 | 1.37 |
300658.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 300658.SZ:
cost_of_equity (11.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.22) + 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.