603568.SS WACC - Weighted Average Cost of Capital
The WACC of Zhejiang Weiming Environment Protection Co Ltd (603568.SS) is 8.4%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.6% | 9.25% |
| Tax rate | 8.7% - 9.4% | 9.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.3% - 9.5% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.86 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.6% |
| Tax rate | 8.7% | 9.4% |
| Debt/Equity ratio | 0.22 | 0.22 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.3% | 9.5% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603568.SS | Zhejiang Weiming Environment Protection Co Ltd | 0.22 | 0.9 | 0.75 |
| 002973.SZ | QiaoYin City Management Co Ltd | 0.68 | 1.26 | 0.78 |
| 300355.SZ | Inner Mongolia M-Grass Ecology and Environment Group Co Ltd | 0.93 | 0.95 | 0.51 |
| 300815.SZ | EIT Environmental Development Group Co Ltd | 0.29 | 1.25 | 0.99 |
| 600217.SS | China Resources and Environment Co Ltd | 0.52 | 1.22 | 0.83 |
| 601200.SS | Shanghai Environment Group Co Ltd | 0.91 | 0.68 | 0.37 |
| 601330.SS | Dynagreen Environmental Protection Group Co Ltd | 1.09 | 0.81 | 0.41 |
| 601827.SS | Chongqing Sanfeng Environment Group Corp Ltd | 0.51 | 0.61 | 0.41 |
| 688156.SS | Road Environment Technology Co Ltd | 0.27 | 1.04 | 0.84 |
| BIN.AX | Bingo Industries Ltd | 0.17 | 1.23 | 1.07 |
| Low | High | |
| Unlevered beta | 0.65 | 0.8 |
| Relevered beta | 0.79 | 0.96 |
| Adjusted relevered beta | 0.86 | 0.97 |
603568.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 603568.SS:
cost_of_equity (9.25%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.86) + 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.