603619.SS WACC - Weighted Average Cost of Capital
The WACC of Zhongman Petroleum and Natural Gas Group Corp Ltd (603619.SS) is 8.7%.
| Range | Selected | |
| Cost of equity | 9.7% - 12.9% | 11.3% |
| Tax rate | 21.7% - 25.3% | 23.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 9.7% | 8.7% |
| 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 | 21.7% | 25.3% |
| Debt/Equity ratio | 0.52 | 0.52 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 9.7% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 603619.SS | Zhongman Petroleum and Natural Gas Group Corp Ltd | 0.52 | 0.96 | 0.68 |
| 002554.SZ | China Oil Hbp Science & Technology Co Ltd | 0.45 | 0.99 | 0.74 |
| 002629.SZ | Zhejiang Renzhi Co Ltd | 0.03 | 1.15 | 1.13 |
| 1251.HK | SPT Energy Group Inc | 4.42 | 0.32 | 0.07 |
| 300084.SZ | Haimo Technologies Group Corp | 0.13 | 0.7 | 0.64 |
| 300157.SZ | LandOcean Energy Services Co Ltd | 0.13 | 1.72 | 1.57 |
| 300164.SZ | Tong Petrotech Corp | 0.14 | 1.07 | 0.97 |
| 601798.SS | Lanpec Technologies Ltd | 0.15 | 1.12 | 1.01 |
| 603727.SS | BOMESC Offshore Engineering Co Ltd | 0.2 | 1.21 | 1.05 |
| 603800.SS | Suzhou Douson Drilling&Production Equipment Co Ltd | 0.2 | 1.58 | 1.37 |
| Low | High | |
| Unlevered beta | 0.87 | 1.02 |
| Relevered beta | 1.22 | 1.43 |
| Adjusted relevered beta | 1.15 | 1.29 |
603619.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 603619.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.