603188.SS WACC - Weighted Average Cost of Capital
The WACC of Jiangsu Yabang Dyestuff Ltd (603188.SS) is 9.1%.
| Range | Selected | |
| Cost of equity | 8.4% - 12.0% | 10.2% |
| Tax rate | 4.1% - 10.4% | 7.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.6% - 10.5% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.93 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 12.0% |
| Tax rate | 4.1% | 10.4% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.6% | 10.5% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603188.SS | Jiangsu Yabang Dyestuff Ltd | 0.26 | 0.84 | 0.68 |
| 002054.SZ | Dymatic Chemicals Inc | 0.97 | 1.07 | 0.56 |
| 002741.SZ | Guangdong Guanghua Sci-Tech Co Ltd | 0.19 | 0.88 | 0.75 |
| 300067.SZ | Shanghai Anoky Group Co Ltd | 0.13 | 1.28 | 1.15 |
| 300243.SZ | Shandong Ruifeng Chemical Co Ltd | 0.37 | 1.23 | 0.92 |
| 300325.SZ | Jiangsu Dewei Advanced Materials Co Ltd | 8.14 | 0.62 | 0.07 |
| 300340.SZ | Jiangmen Kanhoo Industry Co Ltd | 0.47 | 0.91 | 0.63 |
| 300641.SZ | Jiangsu Zhengdan Chemical Industry Co Ltd | 0.01 | 1.35 | 1.33 |
| 600367.SS | Guizhou Redstar Developing Co Ltd | 0.01 | 1.24 | 1.23 |
| 603519.SS | Jiangsu Liba Enterprise Joint-Stock Co Ltd | 0.05 | 1.19 | 1.14 |
| Low | High | |
| Unlevered beta | 0.72 | 1.01 |
| Relevered beta | 0.9 | 1.25 |
| Adjusted relevered beta | 0.93 | 1.17 |
603188.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 603188.SS:
cost_of_equity (10.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.93) + 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.