002409.SZ
Jiangsu Yoke Technology Co Ltd
Price:  
56.25 
CNY
Volume:  
6,963,333.00
China | Chemicals
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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.