000049.SZ WACC - Weighted Average Cost of Capital
The WACC of Shenzhen Desay Battery Technology Co Ltd (000049.SZ) is 6.5%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.2% | 7.65% |
| Tax rate | 15.4% - 17.0% | 16.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 7.5% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.55 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.2% |
| Tax rate | 15.4% | 17.0% |
| Debt/Equity ratio | 0.49 | 0.49 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 7.5% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000049.SZ | Shenzhen Desay Battery Technology Co Ltd | 0.49 | 1.37 | 0.97 |
| 002309.SZ | Jiangsu Zhongli Group Co Ltd | 0.12 | 0.11 | 0.1 |
| 1366.HK | Jiangnan Group Ltd | 1.63 | -0.27 | -0.12 |
| 1399.HK | Veson Holdings Ltd | 6.25 | 0.3 | 0.05 |
| 3898.HK | Zhuzhou CRRC Times Electric Co Ltd | 0.01 | 0.28 | 0.28 |
| 600525.SS | ChangYuan Technology Group Ltd | 1.26 | 0.51 | 0.25 |
| 600577.SS | Tongling Jingda Special Magnet Wire Co Ltd | 0.35 | 1.46 | 1.13 |
| 600580.SS | Wolong Electric Group Co Ltd | 0.3 | 1.52 | 1.22 |
| 600869.SS | Far East Smarter Energy Co Ltd | 0.61 | 1.15 | 0.76 |
| 601567.SS | Ningbo Sanxing Medical Electric Co Ltd | 0.17 | 0.25 | 0.22 |
| Low | High | |
| Unlevered beta | 0.24 | 0.47 |
| Relevered beta | 0.33 | 0.66 |
| Adjusted relevered beta | 0.55 | 0.77 |
000049.SZ'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 000049.SZ:
cost_of_equity (7.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.55) + 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.