002224.SZ WACC - Weighted Average Cost of Capital
The WACC of Sanlux Co Ltd (002224.SZ) is 10.6%.
| Range | Selected | |
| Cost of equity | 9.6% - 12.5% | 11.05% |
| Tax rate | 16.9% - 17.9% | 17.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.2% - 12.0% | 10.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.12 | 1.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 12.5% |
| Tax rate | 16.9% | 17.9% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.2% | 12.0% |
| Selected WACC | 10.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002224.SZ | Sanlux Co Ltd | 0.06 | 0.82 | 0.78 |
| 300095.SZ | Jiangxi Huawu Brake Co Ltd | 0.26 | 1.39 | 1.15 |
| 300193.SZ | Shenzhen Jasic Technology Co Ltd | 0.07 | 1.34 | 1.27 |
| 300403.SZ | Hanyu Group Joint Stock Co Ltd | 0.02 | 1.57 | 1.54 |
| 300435.SZ | Hangzhou Zhongtai Cryogenic Technology Corp | 0.02 | 1.09 | 1.07 |
| 600592.SS | Fujian Longxi Bearing Group Co Ltd | 0.05 | 0.99 | 0.95 |
| 603076.SS | Ningbo Lehui International Engineering Equipment Co Ltd | 0.3 | 1.75 | 1.4 |
| 603319.SS | Hunan Oil Pump Co Ltd | 0.08 | 1.17 | 1.1 |
| 688518.SS | Shenzhen United Winners Laser Co Ltd | 0.19 | 1.53 | 1.33 |
| 688559.SS | Shenzhen Hymson Laser Intelligent Equipments Co Ltd | 0.47 | 1.82 | 1.31 |
| Low | High | |
| Unlevered beta | 1.13 | 1.28 |
| Relevered beta | 1.18 | 1.36 |
| Adjusted relevered beta | 1.12 | 1.24 |
002224.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 002224.SZ:
cost_of_equity (11.05%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.12) + 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.