002063.SZ WACC - Weighted Average Cost of Capital
The WACC of YGSOFT Inc (002063.SZ) is 11.8%.
| Range | Selected | |
| Cost of equity | 10.4% - 13.4% | 11.9% |
| Tax rate | 3.4% - 4.6% | 4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.4% - 13.3% | 11.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.26 | 1.36 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 13.4% |
| Tax rate | 3.4% | 4.6% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.4% | 13.3% |
| Selected WACC | 11.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002063.SZ | YGSOFT Inc | 0.01 | 1.35 | 1.34 |
| 002195.SZ | Shanghai 2345 Network Holding Group Co Ltd | 0 | 2.06 | 2.06 |
| 002232.SZ | Qiming Information Technology Co Ltd | 0 | 1.4 | 1.4 |
| 002657.SZ | Sinodata Co Ltd | 0.01 | 1.25 | 1.24 |
| 1588.HK | Chanjet Information Technology Co Ltd | 0 | 0.69 | 0.69 |
| 300378.SZ | Digiwin Software Co Ltd | 0.01 | 1.59 | 1.57 |
| 300663.SZ | Client Service International Inc | 0.17 | 1.89 | 1.62 |
| 300687.SZ | Guangzhou Sie Consulting Co Ltd | 0.05 | 1.57 | 1.5 |
| 603636.SS | Linewell Software Co Ltd | 0.24 | 1.03 | 0.84 |
| 688588.SS | Linkage Software Co Ltd | 0.06 | 1.85 | 1.74 |
| Low | High | |
| Unlevered beta | 1.38 | 1.53 |
| Relevered beta | 1.39 | 1.54 |
| Adjusted relevered beta | 1.26 | 1.36 |
002063.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 002063.SZ:
cost_of_equity (11.90%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.26) + 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.