CCGY WACC - Weighted Average Cost of Capital
The WACC of China Clean Energy Inc (CCGY) is 3.5%.
| Range | Selected | |
| Cost of equity | 237.4% - 2590.2% | 1413.8% |
| Tax rate | 34.0% - 38.4% | 36.2% |
| Cost of debt | 4.5% - 4.5% | 4.5% |
| WACC | 3.1% - 4.0% | 3.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 50.78 | 461.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 237.4% | 2590.2% |
| Tax rate | 34.0% | 38.4% |
| Debt/Equity ratio | 2138.81 | 2138.81 |
| Cost of debt | 4.5% | 4.5% |
| After-tax WACC | 3.1% | 4.0% |
| Selected WACC | 3.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CCGY | China Clean Energy Inc | 2138.81 | 81.38 | 0.06 |
| CLMT | Calumet Specialty Products Partners LP | 2.2 | 1.79 | 0.76 |
| CVI | CVR Energy Inc | 0.89 | 1.43 | 0.92 |
| DK | Delek US Holdings Inc | 2.9 | 1.45 | 0.52 |
| GERS | Greenshift Corp | 10.15 | 0.58 | 0.08 |
| GIII.V | Gen III Oil Corp | 0.12 | -0.07 | -0.06 |
| HEOL | Highwater Ethanol LLC | 0.01 | -0.03 | -0.03 |
| PTOI | Plastic2Oil Inc | 14.07 | 0.1 | 0.01 |
| REGI | Renewable Energy Group Inc | 0.17 | 0.58 | 0.53 |
| REGX | Red Trail Energy LLC | 0.1 | 0.95 | 0.89 |
| VTNR | Vertex Energy Inc | 72.03 | 1.02 | 0.02 |
| Low | High | |
| Unlevered beta | 0.06 | 0.52 |
| Relevered beta | 75.3 | 688.57 |
| Adjusted relevered beta | 50.78 | 461.67 |
CCGY'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 CCGY:
cost_of_equity (1,413.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (50.78) + 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.