600339.SS
China Petroleum Engineering Corp
Price:  
3.11 
CNY
Volume:  
60,507,020
China | Energy Equipment & Services

600339.SS WACC - Weighted Average Cost of Capital

The WACC of China Petroleum Engineering Corp (600339.SS) is 6.0%.

The Cost of Equity of China Petroleum Engineering Corp (600339.SS) is 8.55%.
The Cost of Debt of China Petroleum Engineering Corp (600339.SS) is 5%.

RangeSelected
Cost of equity6.8% - 10.3%8.55%
Tax rate46.0% - 47.8%46.9%
Cost of debt5.0% - 5.0%5%
WACC5.0% - 7.0%6.0%
WACC

600339.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.670.93
Additional risk adjustments0.0%0.5%
Cost of equity6.8%10.3%
Tax rate46.0%47.8%
Debt/Equity ratio
0.750.75
Cost of debt5.0%5.0%
After-tax WACC5.0%7.0%
Selected WACC6.0%

600339.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 600339.SS:

cost_of_equity (8.55%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + 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.