002112.SZ WACC - Weighted Average Cost of Capital
The WACC of San Bian Science& Technology Co Ltd (002112.SZ) is 10.1%.
| Range | Selected | |
| Cost of equity | 9.0% - 13.9% | 11.45% |
| Tax rate | 0.6% - 0.8% | 0.7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.2% - 12.1% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.02 | 1.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.0% | 13.9% |
| Tax rate | 0.6% | 0.8% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.2% | 12.1% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002112.SZ | San Bian Science& Technology Co Ltd | 0.25 | 0.63 | 0.51 |
| 002227.SZ | Shenzhen Auto Electric Power Plant Co Ltd | 0.09 | 0.71 | 0.65 |
| 2188.HK | China Titans Energy Technology Group Co Ltd | 0.55 | 0.06 | 0.04 |
| 300040.SZ | Harbin Jiuzhou Group Co Ltd | 0.66 | 1.57 | 0.95 |
| 300105.SZ | Yantai LongYuan Power Technology Co Ltd | 0.01 | 1.62 | 1.6 |
| 300153.SZ | Shanghai Cooltech Power Co Ltd | 0.02 | 1.39 | 1.36 |
| 300491.SZ | Shijiazhuang Tonhe Electronics Technologies Co Ltd | 0.15 | 1.7 | 1.48 |
| 300786.SZ | Qingdao Guolin Environmental Technology Co Ltd | 0.08 | 1.85 | 1.71 |
| 600290.SS | Huayi Electric Co Ltd | 2.42 | 1.46 | 0.43 |
| 601616.SS | Shanghai Guangdian Electric Group Co Ltd | 0.02 | 1.33 | 1.3 |
| Low | High | |
| Unlevered beta | 0.83 | 1.33 |
| Relevered beta | 1.03 | 1.66 |
| Adjusted relevered beta | 1.02 | 1.44 |
002112.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 002112.SZ:
cost_of_equity (11.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.02) + 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.