002239.SZ WACC - Weighted Average Cost of Capital
The WACC of Aotecar New Energy Technology Co Ltd (002239.SZ) is 9.4%.
| Range | Selected | |
| Cost of equity | 10.3% - 12.7% | 11.5% |
| Tax rate | 27.2% - 29.3% | 28.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.5% - 10.3% | 9.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.25 | 1.27 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.3% | 12.7% |
| Tax rate | 27.2% | 29.3% |
| Debt/Equity ratio | 0.36 | 0.36 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.5% | 10.3% |
| Selected WACC | 9.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002239.SZ | Aotecar New Energy Technology Co Ltd | 0.36 | 1.35 | 1.07 |
| 002190.SZ | Sichuan Chengfei Integration Technology Corp Ltd | 0.07 | 1.17 | 1.11 |
| 002850.SZ | Shenzhen Kedali Industry Co Ltd | 0.15 | 1.33 | 1.2 |
| 002906.SZ | Foryou Corp | 0.14 | 1.36 | 1.24 |
| 002970.SZ | Streamax Technology Co Ltd | 0.04 | 1.14 | 1.11 |
| 600933.SS | IKD Co Ltd | 0.24 | 1.28 | 1.09 |
| 603179.SS | Jiangsu Xinquan Automotive Trim Co Ltd | 0.22 | 0.98 | 0.85 |
| 603305.SS | Ningbo Xusheng Auto Technology Co Ltd | 0.48 | 1.2 | 0.9 |
| 603596.SS | Bethel Automotive Safety Systems Co Ltd | 0.06 | 1.26 | 1.2 |
| 603730.SS | Shanghai Daimay Automotive Interior Co Ltd | 0.1 | 0.89 | 0.83 |
| Low | High | |
| Unlevered beta | 1.09 | 1.11 |
| Relevered beta | 1.37 | 1.4 |
| Adjusted relevered beta | 1.25 | 1.27 |
002239.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 002239.SZ:
cost_of_equity (11.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.25) + 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.