600103.SS WACC - Weighted Average Cost of Capital
The WACC of Fujian Qingshan Paper Industry Co Ltd (600103.SS) is 8.0%.
| Range | Selected | |
| Cost of equity | 8.0% - 10.1% | 9.05% |
| Tax rate | 17.6% - 21.0% | 19.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.2% - 8.8% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.87 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 10.1% |
| Tax rate | 17.6% | 21.0% |
| Debt/Equity ratio | 0.27 | 0.27 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.2% | 8.8% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600103.SS | Fujian Qingshan Paper Industry Co Ltd | 0.27 | 1.18 | 0.97 |
| 000833.SZ | Guangxi Yuegui Guangye Holdings Co Ltd | 0.15 | 0.08 | 0.07 |
| 002521.SZ | Qifeng New Material Co Ltd | 0.19 | 1.19 | 1.04 |
| 600235.SS | Minfeng Special Paper Co Ltd | 0.54 | 1 | 0.7 |
| 600356.SS | Mudanjiang Hengfeng Paper Co Ltd | 0.17 | 0.78 | 0.68 |
| 600433.SS | Guangdong Guanhao High-Tech Co Ltd | 0.69 | 0.97 | 0.62 |
| 600793.SS | Yibin Paper Industry Co Ltd | 0.36 | 0.64 | 0.5 |
| 603165.SS | Zhejiang Rongsheng Environmental Protection Paper Joint Stock Co Ltd | 0.65 | 1.07 | 0.7 |
| 605007.SS | Quzhou Wuzhou Special Paper Co Ltd | 1.13 | 1.17 | 0.61 |
| 605377.SS | Hangzhou Huawang New Material Technology Co Ltd | 0.25 | 1.2 | 1 |
| Low | High | |
| Unlevered beta | 0.66 | 0.7 |
| Relevered beta | 0.81 | 0.85 |
| Adjusted relevered beta | 0.87 | 0.9 |
600103.SS'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 600103.SS:
cost_of_equity (9.05%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.87) + 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.