603239.SS WACC - Weighted Average Cost of Capital
The WACC of Zhejiang Xiantong Rubber&Plastic Co Ltd (603239.SS) is 11.2%.
| Range | Selected | |
| Cost of equity | 9.7% - 12.9% | 11.3% |
| Tax rate | 11.8% - 12.1% | 11.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.7% - 12.8% | 11.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.15 | 1.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.7% | 12.9% |
| Tax rate | 11.8% | 12.1% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.7% | 12.8% |
| Selected WACC | 11.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603239.SS | Zhejiang Xiantong Rubber&Plastic Co Ltd | 0.01 | 1.19 | 1.18 |
| 002813.SZ | Shenzhen RoadRover Technology Co Ltd | 0.02 | 1.24 | 1.22 |
| 300304.SZ | Jiangsu Yunyi Electric Co Ltd | 0.03 | 1.53 | 1.49 |
| 300391.SZ | Kangyue Technology Co Ltd | 0.8 | 1.75 | 1.03 |
| 300580.SZ | Wuxi Best Precision Machinery Co Ltd | 0 | 1.82 | 1.82 |
| 300680.SZ | Wuxi Longsheng Technology Co Ltd | 0.15 | 1.37 | 1.21 |
| 300695.SZ | Zhejiang Zhaofeng Mechanical and Electronic Co Ltd | 0.01 | 1.39 | 1.37 |
| 300928.SZ | HAXC Holdings Beijing Co Ltd | 0.02 | 1.61 | 1.58 |
| 603758.SS | Chongqing QinAn M&E PLC | 0.02 | 1.9 | 1.86 |
| 603809.SS | Chengdu Haoneng Technology Co Ltd | 0.18 | 1.29 | 1.12 |
| Low | High | |
| Unlevered beta | 1.22 | 1.42 |
| Relevered beta | 1.22 | 1.43 |
| Adjusted relevered beta | 1.15 | 1.29 |
603239.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 603239.SS:
cost_of_equity (11.30%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.15) + 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.