603928.SS
Suzhou Xingye Materials Technology Co Ltd
Price:  
15.8 
CNY
Volume:  
8,703,389
China | Chemicals

603928.SS WACC - Weighted Average Cost of Capital

The WACC of Suzhou Xingye Materials Technology Co Ltd (603928.SS) is 9.4%.

The Cost of Equity of Suzhou Xingye Materials Technology Co Ltd (603928.SS) is 9.4%.
The Cost of Debt of Suzhou Xingye Materials Technology Co Ltd (603928.SS) is 5%.

RangeSelected
Cost of equity8.3% - 10.5%9.4%
Tax rate12.9% - 14.0%13.45%
Cost of debt5.0% - 5.0%5%
WACC8.2% - 10.5%9.4%
WACC

603928.SS WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.910.96
Additional risk adjustments0.0%0.5%
Cost of equity8.3%10.5%
Tax rate12.9%14.0%
Debt/Equity ratio
0.010.01
Cost of debt5.0%5.0%
After-tax WACC8.2%10.5%
Selected WACC9.4%

603928.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 603928.SS:

cost_of_equity (9.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.91) + 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.