002103.SZ WACC - Weighted Average Cost of Capital
The WACC of Guangbo Group Stock Co Ltd (002103.SZ) is 8.6%.
| Range | Selected | |
| Cost of equity | 7.6% - 10.2% | 8.9% |
| Tax rate | 3.9% - 5.3% | 4.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.4% - 9.8% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.81 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 10.2% |
| Tax rate | 3.9% | 5.3% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.4% | 9.8% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002103.SZ | Guangbo Group Stock Co Ltd | 0.07 | 1.04 | 0.97 |
| 002301.SZ | Shenzhen Comix Group Co Ltd | 0.37 | 1.38 | 1.02 |
| 002341.SZ | Shenzhen Selen Science & Technology Co Ltd | 3.26 | 1.42 | 0.35 |
| 300551.SZ | Shanghai Guao Electronic Technology Co Ltd | 0 | 1.77 | 1.77 |
| 300729.SZ | Loctek Ergonomic Technology Corp | 0.89 | 1.3 | 0.71 |
| 300847.SZ | HG Technologies Co Ltd | 0 | 1.18 | 1.18 |
| 603600.SS | UE Furniture Co Ltd | 0.28 | 0.89 | 0.7 |
| 603661.SS | Henglin Home Furnishings Co Ltd | 0.96 | 1.17 | 0.61 |
| 8370.HK | Zhi Sheng Group Holdings Ltd | 0.02 | -0.24 | -0.23 |
| BKK.SI | Luxking Group Holdings Ltd | 4.42 | -0.3 | -0.06 |
| Low | High | |
| Unlevered beta | 0.67 | 0.81 |
| Relevered beta | 0.72 | 0.87 |
| Adjusted relevered beta | 0.81 | 0.91 |
002103.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 002103.SZ:
cost_of_equity (8.90%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.81) + 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.