002184.SZ
Shanghai Hi-Tech Control System Co Ltd
Price:  
12.29 
CNY
Volume:  
14,707,041.00
China | IT Services
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002184.SZ WACC - Weighted Average Cost of Capital

The WACC of Shanghai Hi-Tech Control System Co Ltd (002184.SZ) is 10.7%.

The Cost of Equity of Shanghai Hi-Tech Control System Co Ltd (002184.SZ) is 12.70%.
The Cost of Debt of Shanghai Hi-Tech Control System Co Ltd (002184.SZ) is 5.00%.

Range Selected
Cost of equity 10.60% - 14.80% 12.70%
Tax rate 16.50% - 17.30% 16.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.1% - 12.3% 10.7%
WACC

002184.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.3 1.56
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.60% 14.80%
Tax rate 16.50% 17.30%
Debt/Equity ratio 0.3 0.3
Cost of debt 5.00% 5.00%
After-tax WACC 9.1% 12.3%
Selected WACC 10.7%

002184.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 002184.SZ:

cost_of_equity (12.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.3) + 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.