600160.SS WACC - Weighted Average Cost of Capital
The WACC of Zhejiang Juhua Co Ltd (600160.SS) is 8.3%.
| Range | Selected | |
| Cost of equity | 7.4% - 9.6% | 8.5% |
| Tax rate | 11.3% - 12.4% | 11.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.2% - 9.3% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.78 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 9.6% |
| Tax rate | 11.3% | 12.4% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.2% | 9.3% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600160.SS | Zhejiang Juhua Co Ltd | 0.06 | 1.09 | 1.03 |
| 000990.SZ | Chengzhi Co Ltd | 0.71 | 1.18 | 0.73 |
| 002080.SZ | Sinoma Science & Technology Co Ltd | 0.56 | 1.36 | 0.91 |
| 1907.HK | China Risun Group Ltd | 3.05 | 0.33 | 0.09 |
| 600141.SS | HuBei XingFa Chemical Group Co Ltd | 0.66 | 1.09 | 0.69 |
| 600277.SS | Elion Energy Co Ltd | 6 | 1.43 | 0.23 |
| 600299.SS | Bluestar Adisseo Co | 0.05 | 0.72 | 0.69 |
| 600409.SS | Tangshan Sanyou Chemical Industries Co Ltd | 0.6 | 1.17 | 0.77 |
| 600810.SS | Shenma Industry Co Ltd | 1.54 | 0.94 | 0.4 |
| 601118.SS | China Hainan Rubber Industry Group Co Ltd | 0.93 | 0.99 | 0.55 |
| Low | High | |
| Unlevered beta | 0.63 | 0.7 |
| Relevered beta | 0.67 | 0.75 |
| Adjusted relevered beta | 0.78 | 0.83 |
600160.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 600160.SS:
cost_of_equity (8.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.78) + 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.