603033.SS WACC - Weighted Average Cost of Capital
The WACC of Zhejiang Sanwei Rubber Item Co Ltd (603033.SS) is 8.6%.
| Range | Selected | |
| Cost of equity | 9.6% - 12.1% | 10.85% |
| Tax rate | 24.4% - 25.2% | 24.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.8% - 9.4% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.14 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 12.1% |
| Tax rate | 24.4% | 25.2% |
| Debt/Equity ratio | 0.48 | 0.48 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.8% | 9.4% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603033.SS | Zhejiang Sanwei Rubber Item Co Ltd | 0.48 | 0.97 | 0.72 |
| 002838.SZ | Shandong Dawn Polymer Co Ltd | 0.28 | 1.06 | 0.88 |
| 300196.SZ | Jiangsu Changhai Composite Materials Co Ltd | 0.27 | 1.13 | 0.94 |
| 300487.SZ | Sunresin New Materials Co Ltd XiAn | 0.02 | 1.13 | 1.11 |
| 300596.SZ | Rianlon Corp | 0.52 | 1.64 | 1.18 |
| 600929.SS | Snowsky Salt Industry Group Co Ltd | 0.1 | 0.96 | 0.89 |
| 601208.SS | Sichuan Em Technology Co Ltd | 0.48 | 1.26 | 0.93 |
| 603010.SS | Zhejiang Wansheng Co Ltd | 0.32 | 0.81 | 0.65 |
| 603906.SS | JIANGSU LOPAL TECH Co Ltd | 1.04 | 1.92 | 1.07 |
| 605006.SS | Shandong Fiberglass Group Co Ltd | 0.64 | 1.08 | 0.73 |
| Low | High | |
| Unlevered beta | 0.89 | 0.93 |
| Relevered beta | 1.21 | 1.27 |
| Adjusted relevered beta | 1.14 | 1.18 |
603033.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 603033.SS:
cost_of_equity (10.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.14) + 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.