000100.SZ WACC - Weighted Average Cost of Capital

The WACC of TCL Technology Group Corp (000100.SZ) is 9.3%.

The Cost of Equity of TCL Technology Group Corp (000100.SZ) is 20.15%.

The Cost of Debt of TCL Technology Group Corp (000100.SZ) is 5.00%.

	Range	Selected
Cost of equity	15.70% - 24.60%	20.15%
Tax rate	11.00% - 29.20%	20.10%
Cost of debt	5.00% - 5.00%	5.00%
WACC	8.2% - 10.5%	9.3%

WACC

000100.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	2.13	2.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.70%	24.60%

Tax rate	11.00%	29.20%
Debt/Equity ratio	2.04	2.04
Cost of debt	5.00%	5.00%

After-tax WACC	8.2%	10.5%


Selected WACC	9.3%

000100.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 000100.SZ:

cost_of_equity (20.15%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (2.13) + 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.