603995.SS
Zhejiang Yongjin Metal Technology Co Ltd
Price:  
16.32 
CNY
Volume:  
4,998,500.00
China | Metals & Mining
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603995.SS WACC - Weighted Average Cost of Capital

The WACC of Zhejiang Yongjin Metal Technology Co Ltd (603995.SS) is 7.7%.

The Cost of Equity of Zhejiang Yongjin Metal Technology Co Ltd (603995.SS) is 10.75%.
The Cost of Debt of Zhejiang Yongjin Metal Technology Co Ltd (603995.SS) is 5.00%.

Range Selected
Cost of equity 9.20% - 12.30% 10.75%
Tax rate 18.30% - 18.90% 18.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.8% - 8.5% 7.7%
WACC

603995.SS WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.06 1.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 12.30%
Tax rate 18.30% 18.90%
Debt/Equity ratio 0.85 0.85
Cost of debt 5.00% 5.00%
After-tax WACC 6.8% 8.5%
Selected WACC 7.7%

603995.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 603995.SS:

cost_of_equity (10.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.06) + 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.