002156.SZ WACC - Weighted Average Cost of Capital
The WACC of TongFu Microelectronics Co Ltd (002156.SZ) is 9.8%.
| Range | Selected | |
| Cost of equity | 10.1% - 13.4% | 11.75% |
| Tax rate | 8.8% - 11.7% | 10.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.6% - 11.0% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.21 | 1.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 13.4% |
| Tax rate | 8.8% | 11.7% |
| Debt/Equity ratio | 0.38 | 0.38 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.6% | 11.0% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002156.SZ | TongFu Microelectronics Co Ltd | 0.38 | 1.34 | 1 |
| 002185.SZ | Tianshui Huatian Technology Co Ltd | 0.43 | 1.32 | 0.95 |
| 002506.SZ | GCL System Integration Technology Co Ltd | 0.7 | 1.46 | 0.9 |
| 002610.SZ | Jiangsu Akcome Science & Technology Co Ltd | 3.38 | 1.75 | 0.44 |
| 300373.SZ | Yangzhou Yangjie Electronic Technology Co Ltd | 0.1 | 1.59 | 1.46 |
| 300724.SZ | Shenzhen SC New Energy Technology Corp | 0.02 | 1.95 | 1.92 |
| 600206.SS | Grinm Advanced Materials Co Ltd | 0.09 | 0.71 | 0.65 |
| 600363.SS | Jiangxi Lianchuang Opto Electronic Science &Technology Co Ltd | 0.07 | 1.58 | 1.49 |
| 600460.SS | Hangzhou Silan Microelectronics Co Ltd | 0.15 | 1.27 | 1.12 |
| 601908.SS | Beijing Jingyuntong Technology Co Ltd | 0.73 | 2.03 | 1.23 |
| Low | High | |
| Unlevered beta | 0.98 | 1.16 |
| Relevered beta | 1.31 | 1.55 |
| Adjusted relevered beta | 1.21 | 1.37 |
002156.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 002156.SZ:
cost_of_equity (11.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.21) + 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.