The WACC of Visionox Technology Inc (002387.SZ) is 8.7%.
Range | Selected | |
Cost of equity | 13.0% - 18.2% | 15.6% |
Tax rate | 10.8% - 14.0% | 12.4% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 7.8% - 9.7% | 8.7% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 1.69 | 2.03 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 13.0% | 18.2% |
Tax rate | 10.8% | 14.0% |
Debt/Equity ratio | 1.57 | 1.57 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 7.8% | 9.7% |
Selected WACC | 8.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
002387.SZ | Visionox Technology Inc | 1.57 | 1.73 | 0.72 |
000970.SZ | Beijing Zhong Ke San Huan High-Tech Co Ltd | 0.07 | 1.05 | 0.98 |
002273.SZ | Zhejiang Crystal-Optech Co Ltd | 0.02 | 0.85 | 0.84 |
002402.SZ | Shenzhen H&T Intelligent Control Co Ltd | 0.16 | 0.85 | 0.74 |
002436.SZ | Shenzhen Fastprint Circuit Tech Co Ltd | 0.2 | 1.91 | 1.62 |
002815.SZ | Suntak Technology Co Ltd | 0.22 | 1.45 | 1.21 |
300679.SZ | Electric Connector Technology Co Ltd | 0.05 | 1.34 | 1.29 |
600366.SS | Ningbo Yunsheng Co Ltd | 0.2 | 1.01 | 0.86 |
603186.SS | Zhejiang Wazam New Materials Co Ltd | 0.8 | 1.03 | 0.6 |
603989.SS | Hunan Aihua Group Co Ltd | 0.25 | 1.44 | 1.18 |
Low | High | |
Unlevered beta | 0.85 | 1.06 |
Relevered beta | 2.03 | 2.54 |
Adjusted relevered beta | 1.69 | 2.03 |
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 002387.SZ:
cost_of_equity (15.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.69) + 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.