300758.SZ
Anshan Hifichem Co Ltd
Price:  
14.65 
CNY
Volume:  
16,465,700
China | Chemicals

300758.SZ WACC - Weighted Average Cost of Capital

The WACC of Anshan Hifichem Co Ltd (300758.SZ) is 10.4%.

The Cost of Equity of Anshan Hifichem Co Ltd (300758.SZ) is 11.8%.
The Cost of Debt of Anshan Hifichem Co Ltd (300758.SZ) is 5%.

RangeSelected
Cost of equity10.3% - 13.3%11.8%
Tax rate25.0% - 25.0%25%
Cost of debt5.0% - 5.0%5%
WACC9.2% - 11.7%10.4%
WACC

300758.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.251.35
Additional risk adjustments0.0%0.5%
Cost of equity10.3%13.3%
Tax rate25.0%25.0%
Debt/Equity ratio
0.20.2
Cost of debt5.0%5.0%
After-tax WACC9.2%11.7%
Selected WACC10.4%

300758.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 300758.SZ:

cost_of_equity (11.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.25) + 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.