002348.SZ
Goldlok Holdings Guangdong Co Ltd
Price:  
3.59 
CNY
Volume:  
17,481,000.00
China | Leisure Products
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002348.SZ WACC - Weighted Average Cost of Capital

The WACC of Goldlok Holdings Guangdong Co Ltd (002348.SZ) is 9.9%.

The Cost of Equity of Goldlok Holdings Guangdong Co Ltd (002348.SZ) is 10.05%.
The Cost of Debt of Goldlok Holdings Guangdong Co Ltd (002348.SZ) is 5.00%.

Range Selected
Cost of equity 7.60% - 12.50% 10.05%
Tax rate 2.20% - 2.70% 2.45%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.5% - 12.3% 9.9%
WACC

002348.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.81 1.24
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 12.50%
Tax rate 2.20% 2.70%
Debt/Equity ratio 0.03 0.03
Cost of debt 5.00% 5.00%
After-tax WACC 7.5% 12.3%
Selected WACC 9.9%

002348.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 002348.SZ:

cost_of_equity (10.05%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.81) + 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.