600808.SS WACC - Weighted Average Cost of Capital
The WACC of Maanshan Iron & Steel Co Ltd (600808.SS) is 7.9%.
| Range | Selected | |
| Cost of equity | 10.6% - 13.7% | 12.15% |
| Tax rate | 10.0% - 15.3% | 12.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.3% - 8.5% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.29 | 1.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.6% | 13.7% |
| Tax rate | 10.0% | 15.3% |
| Debt/Equity ratio | 1.2 | 1.2 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.3% | 8.5% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 600808.SS | Maanshan Iron & Steel Co Ltd | 1.2 | 1.24 | 0.61 |
| 000825.SZ | Shanxi Taigang Stainless Steel Co Ltd | 1.06 | 1.34 | 0.71 |
| 000959.SZ | Beijing Shougang Co Ltd | 1.66 | 1.19 | 0.49 |
| 002075.SZ | Jiangsu Shagang Co Ltd | 0.87 | 1.74 | 1 |
| 600010.SS | Inner Mongolia BaoTou Steel Union Co Ltd | 0.64 | 1.28 | 0.83 |
| 600022.SS | Shandong Iron and Steel Co Ltd | 1.82 | 1.13 | 0.44 |
| 600126.SS | Hang Zhou Iron & Steel Co Ltd | 0.24 | 1.39 | 1.16 |
| 600782.SS | Xinyu Iron & Steel Co Ltd | 1.3 | 1.51 | 0.71 |
| 600985.SS | Huaibei Mining Holdings Co Ltd | 0.3 | 1.21 | 0.96 |
| 601005.SS | Chongqing Iron & Steel Co Ltd | 0.78 | 1.28 | 0.77 |
| Low | High | |
| Unlevered beta | 0.71 | 0.79 |
| Relevered beta | 1.43 | 1.61 |
| Adjusted relevered beta | 1.29 | 1.41 |
600808.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 600808.SS:
cost_of_equity (12.15%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.29) + 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.