002150.SZ WACC - Weighted Average Cost of Capital
The WACC of Jiangsu Tongrun Equipment Technology Co Ltd (002150.SZ) is 9.7%.
| Range | Selected | |
| Cost of equity | 9.9% - 14.3% | 12.1% |
| Tax rate | 25.4% - 26.6% | 26% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.1% - 11.3% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.17 | 1.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 14.3% |
| Tax rate | 25.4% | 26.6% |
| Debt/Equity ratio | 0.4 | 0.4 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.1% | 11.3% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002150.SZ | Jiangsu Tongrun Equipment Technology Co Ltd | 0.4 | 0.73 | 0.56 |
| 002779.SZ | Zhejiang Zhongjian Technology Co Ltd | 0 | 1.51 | 1.51 |
| 003023.SZ | Chengdu Rainbow Appliance Group Shares Co Ltd | 0.06 | 0.76 | 0.73 |
| 1626.TW | Airmate Cayman International Co Ltd | 0.46 | 0.6 | 0.44 |
| 300217.SZ | Zhenjiang Dongfang Electric Heating Technology Co Ltd | 0.1 | 1.87 | 1.74 |
| 300249.SZ | Yimikang Tech Group Co Ltd | 0.09 | 1.62 | 1.52 |
| 300272.SZ | Canature Health Technology Group Co Ltd | 0.22 | 1.69 | 1.45 |
| 300879.SZ | Ningbo Daye Garden Machinery Co Ltd | 0.15 | 1.27 | 1.14 |
| 603551.SS | AUPU Home Style Corp Ltd | 0.06 | 0.79 | 0.75 |
| 603657.SS | Jinhua Chunguang Technology Co Ltd | 0.25 | 1.5 | 1.26 |
| Low | High | |
| Unlevered beta | 0.99 | 1.34 |
| Relevered beta | 1.25 | 1.75 |
| Adjusted relevered beta | 1.17 | 1.5 |
002150.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 002150.SZ:
cost_of_equity (12.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.17) + 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.