603155.SS WACC - Weighted Average Cost of Capital

The WACC of Xinyaqiang Silicon Chemistry Co Ltd (603155.SS) is 12.2%.

The Cost of Equity of Xinyaqiang Silicon Chemistry Co Ltd (603155.SS) is 12.40%.

The Cost of Debt of Xinyaqiang Silicon Chemistry Co Ltd (603155.SS) is 5.00%.

	Range	Selected
Cost of equity	10.90% - 13.90%	12.40%
Tax rate	12.90% - 13.20%	13.05%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.7% - 13.7%	12.2%

WACC

603155.SS WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.34	1.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	13.90%

Tax rate	12.90%	13.20%
Debt/Equity ratio	0.03	0.03
Cost of debt	5.00%	5.00%

After-tax WACC	10.7%	13.7%


Selected WACC	12.2%

603155.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 603155.SS:

cost_of_equity (12.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.34) + 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.