002409.SZ WACC - Weighted Average Cost of Capital

The WACC of Jiangsu Yoke Technology Co Ltd (002409.SZ) is 10.6%.

The Cost of Equity of Jiangsu Yoke Technology Co Ltd (002409.SZ) is 11.50%.

The Cost of Debt of Jiangsu Yoke Technology Co Ltd (002409.SZ) is 5.00%.

	Range	Selected
Cost of equity	10.20% - 12.80%	11.50%
Tax rate	16.60% - 17.50%	17.05%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.5% - 11.8%	10.6%

WACC

002409.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.23	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	12.80%

Tax rate	16.60%	17.50%
Debt/Equity ratio	0.13	0.13
Cost of debt	5.00%	5.00%

After-tax WACC	9.5%	11.8%


Selected WACC	10.6%

002409.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 002409.SZ:

cost_of_equity (11.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.23) + 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.