GURE
Gulf Resources Inc
Price:  
0.60 
USD
Volume:  
34,364.00
China | Chemicals
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GURE WACC - Weighted Average Cost of Capital

The WACC of Gulf Resources Inc (GURE) is 5.7%.

The Cost of Equity of Gulf Resources Inc (GURE) is 5.75%.
The Cost of Debt of Gulf Resources Inc (GURE) is 6.55%.

Range Selected
Cost of equity 4.90% - 6.60% 5.75%
Tax rate 9.40% - 22.90% 16.15%
Cost of debt 6.10% - 7.00% 6.55%
WACC 5.0% - 6.4% 5.7%
WACC

GURE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.23 0.31
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.90% 6.60%
Tax rate 9.40% 22.90%
Debt/Equity ratio 0.18 0.18
Cost of debt 6.10% 7.00%
After-tax WACC 5.0% 6.4%
Selected WACC 5.7%

GURE'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 GURE:

cost_of_equity (5.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.23) + 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.