002369.SZ WACC - Weighted Average Cost of Capital
The WACC of Shenzhen Zowee Technology Co Ltd (002369.SZ) is 9.5%.
| Range | Selected | |
| Cost of equity | 8.3% - 12.5% | 10.4% |
| Tax rate | 7.5% - 8.3% | 7.9% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 11.4% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.91 | 1.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 12.5% |
| Tax rate | 7.5% | 8.3% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 11.4% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002369.SZ | Shenzhen Zowee Technology Co Ltd | 0.21 | 1.24 | 1.04 |
| 1085.HK | Hengxin Technology Ltd | 1.87 | 0.6 | 0.22 |
| 1300.HK | Trigiant Group Ltd | 2.86 | 0.4 | 0.11 |
| 2000.HK | SIM Technology Group Ltd | 0.04 | 0.35 | 0.34 |
| 200468.SZ | Nanjing Putian Telecommunications Co Ltd | 0.29 | 0.37 | 0.29 |
| 300252.SZ | Kingsignal Technology Co Ltd | 0.19 | 1.63 | 1.39 |
| 300292.SZ | Wutong Holding Group Co Ltd | 0.07 | 1.44 | 1.36 |
| 600105.SS | Jiangsu Etern Co Ltd | 0.34 | 1.34 | 1.02 |
| 603083.SS | CIG ShangHai Co Ltd | 0.13 | 1.93 | 1.72 |
| 603803.SS | Raisecom Technology Co Ltd | 0.11 | 1.54 | 1.39 |
| Low | High | |
| Unlevered beta | 0.75 | 1.17 |
| Relevered beta | 0.87 | 1.36 |
| Adjusted relevered beta | 0.91 | 1.24 |
002369.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 002369.SZ:
cost_of_equity (10.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.91) + 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.