002009.SZ WACC - Weighted Average Cost of Capital
The WACC of Miracle Automation Engineering Co Ltd (002009.SZ) is 8.7%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.8% | 10.15% |
| Tax rate | 12.4% - 14.8% | 13.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.5% - 9.9% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.95 | 1.14 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.8% |
| Tax rate | 12.4% | 14.8% |
| Debt/Equity ratio | 0.34 | 0.34 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.5% | 9.9% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002009.SZ | Miracle Automation Engineering Co Ltd | 0.34 | 1.7 | 1.31 |
| 000551.SZ | Create Technology & Science Co Ltd | 0.14 | 0.93 | 0.83 |
| 002073.SZ | Mesnac Co Ltd | 0.39 | 1.44 | 1.08 |
| 002527.SZ | Shanghai STEP Electric Corp | 0.17 | 1.48 | 1.29 |
| 002630.SZ | China Western Power Industrial Co Ltd | 1.61 | 0.74 | 0.31 |
| 002786.SZ | Shenzhen Silver Basis Technology Co Ltd | 0.41 | 0.81 | 0.6 |
| 1651.HK | Precision Tsugami (China) Corporation Ltd | 0 | 0.56 | 0.56 |
| 2060.HK | Pujiang International Group Ltd | 15.62 | 0.21 | 0.01 |
| 300230.SZ | Shanghai YongLi Belting Co Ltd | 0.16 | 1.63 | 1.44 |
| 603611.SS | Noblelift Intelligent Equipment Co Ltd | 0.32 | 1.02 | 0.8 |
| Low | High | |
| Unlevered beta | 0.72 | 0.93 |
| Relevered beta | 0.93 | 1.21 |
| Adjusted relevered beta | 0.95 | 1.14 |
002009.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 002009.SZ:
cost_of_equity (10.15%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.