002337.SZ WACC - Weighted Average Cost of Capital
The WACC of Tianjin Saixiang Technology Co Ltd (002337.SZ) is 9.7%.
| Range | Selected | |
| Cost of equity | 8.7% - 11.2% | 9.95% |
| Tax rate | 6.6% - 10.9% | 8.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.5% - 10.9% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.99 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 11.2% |
| Tax rate | 6.6% | 10.9% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.5% | 10.9% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002337.SZ | Tianjin Saixiang Technology Co Ltd | 0.05 | 1.16 | 1.11 |
| 002843.SZ | Bichamp Cutting Technology Hunan Co Ltd | 0.13 | 2.09 | 1.87 |
| 300092.SZ | Sichuan Kexin Mechanical and Electrical Equipment Co Ltd | 0.02 | 1.34 | 1.32 |
| 300126.SZ | Ken Holding Co Ltd | 0.03 | 1.31 | 1.28 |
| 300509.SZ | Jiangsu Newamstar Packaging Machinery Co Ltd | 0.14 | 1.06 | 0.94 |
| 300619.SZ | Foshan Golden Milky Way Intelligent Equipment Co Ltd | 0.36 | 1.34 | 1 |
| 600302.SS | XiAn Typical Industries Co Ltd | 0.04 | 0.9 | 0.87 |
| 603090.SS | Wuxi Hongsheng Heat Exchanger Manufacturing Co Ltd | 0.05 | 0.97 | 0.93 |
| 603656.SS | Hefei Taihe Intelligent Technology Group Co Ltd | 0.01 | 0.82 | 0.82 |
| 603895.SS | Shanghai Tianyong Engineering Co Ltd | 0.18 | 0.91 | 0.78 |
| Low | High | |
| Unlevered beta | 0.94 | 1.05 |
| Relevered beta | 0.99 | 1.09 |
| Adjusted relevered beta | 0.99 | 1.06 |
002337.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 002337.SZ:
cost_of_equity (9.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.99) + 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.