601168.SS
Western Mining Co Ltd
Price:  
17.25 
CNY
Volume:  
42,762,270.00
China | Metals & Mining
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601168.SS WACC - Weighted Average Cost of Capital

The WACC of Western Mining Co Ltd (601168.SS) is 9.5%.

The Cost of Equity of Western Mining Co Ltd (601168.SS) is 12.60%.
The Cost of Debt of Western Mining Co Ltd (601168.SS) is 5.00%.

Range Selected
Cost of equity 10.60% - 14.60% 12.60%
Tax rate 10.70% - 11.30% 11.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.2% - 10.7% 9.5%
WACC

601168.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.29 1.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.60% 14.60%
Tax rate 10.70% 11.30%
Debt/Equity ratio 0.61 0.61
Cost of debt 5.00% 5.00%
After-tax WACC 8.2% 10.7%
Selected WACC 9.5%

601168.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 601168.SS:

cost_of_equity (12.60%) = 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.