000711.SZ
Kingland Technology Co Ltd
Price:  
1.85 
CNY
Volume:  
40,580,280.00
China | Water Utilities
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000711.SZ WACC - Weighted Average Cost of Capital

The WACC of Kingland Technology Co Ltd (000711.SZ) is 6.1%.

The Cost of Equity of Kingland Technology Co Ltd (000711.SZ) is 6.15%.
The Cost of Debt of Kingland Technology Co Ltd (000711.SZ) is 5.00%.

Range Selected
Cost of equity 5.30% - 7.00% 6.15%
Tax rate 1.80% - 2.30% 2.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 7.0% 6.1%
WACC

000711.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.34 0.4
Additional risk adjustments 0.5% 1.0%
Cost of equity 5.30% 7.00%
Tax rate 1.80% 2.30%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 7.0%
Selected WACC 6.1%

000711.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 000711.SZ:

cost_of_equity (6.15%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.34) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.