603012.SS WACC - Weighted Average Cost of Capital
The WACC of Shanghai Chuangli Group Co Ltd (603012.SS) is 9.6%.
| Range | Selected | |
| Cost of equity | 9.4% - 12.2% | 10.8% |
| Tax rate | 16.4% - 16.5% | 16.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.4% - 10.7% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.1 | 1.2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.4% | 12.2% |
| Tax rate | 16.4% | 16.5% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.4% | 10.7% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603012.SS | Shanghai Chuangli Group Co Ltd | 0.23 | 1.24 | 1.04 |
| 000880.SZ | Weichai Heavy Machinery Co Ltd | 0.12 | 0.99 | 0.9 |
| 002480.SZ | Chengdu Xinzhu Road&Bridge Machinery Co Ltd | 2.11 | 0.56 | 0.2 |
| 002526.SZ | Shandong Mining Machinery Group Co Ltd | 0.09 | 1.99 | 1.85 |
| 1786.HK | Crcc High-Tech Equipment Corp Ltd | 0.54 | 0.73 | 0.5 |
| 300201.SZ | Xuzhou Handler Special Vehicle Co Ltd | 0.09 | 1.77 | 1.65 |
| 600501.SS | Aerosun Corp | 0.15 | 1.35 | 1.2 |
| 600815.SS | Xiamen XGMA Machinery Co Ltd | 0.04 | 1.19 | 1.15 |
| 605001.SS | Qingdao Victall Railway Co Ltd | 0.56 | 1.27 | 0.87 |
| BS6.SI | Yangzijiang Shipbuilding Holdings Ltd | 0.12 | 1.1 | 1.01 |
| Low | High | |
| Unlevered beta | 0.96 | 1.08 |
| Relevered beta | 1.15 | 1.3 |
| Adjusted relevered beta | 1.1 | 1.2 |
603012.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 603012.SS:
cost_of_equity (10.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.1) + 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.