000066.SZ WACC - Weighted Average Cost of Capital
The WACC of China Greatwall Technology Group Co Ltd (000066.SZ) is 9.1%.
| Range | Selected | |
| Cost of equity | 8.1% - 12.3% | 10.2% |
| Tax rate | 4.9% - 7.0% | 5.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.4% - 10.7% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.88 | 1.21 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 12.3% |
| Tax rate | 4.9% | 7.0% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.4% | 10.7% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 000066.SZ | China Greatwall Technology Group Co Ltd | 0.26 | 1.29 | 1.04 |
| 000021.SZ | Shenzhen Kaifa Technology Co Ltd | 0.3 | 1.38 | 1.07 |
| 002152.SZ | GRG Banking Equipment Co Ltd | 0.12 | 1.26 | 1.13 |
| 2308.HK | EVOC Intelligent Technology Co Ltd | 1.82 | 0.43 | 0.16 |
| 2369.HK | Coolpad Group Ltd | 3.75 | 0.56 | 0.12 |
| 300866.SZ | Anker Innovations Technology Co Ltd | 0.03 | 1.01 | 0.98 |
| 600601.SS | Founder Technology Group Co Ltd | 0.06 | 1.49 | 1.41 |
| 603019.SS | Dawning Information Industry Co Ltd | 0.02 | 1.64 | 1.62 |
| 6133.HK | Vital Innovations Holdings Ltd | 0.14 | 0.16 | 0.14 |
| 688086.SS | Amethystum Storage Technology Co Ltd | 0.38 | 0.26 | 0.19 |
| Low | High | |
| Unlevered beta | 0.67 | 1.05 |
| Relevered beta | 0.82 | 1.31 |
| Adjusted relevered beta | 0.88 | 1.21 |
000066.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 000066.SZ:
cost_of_equity (10.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.88) + 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.