002409.SZ WACC - Weighted Average Cost of Capital
The WACC of Jiangsu Yoke Technology Co Ltd (002409.SZ) is 10.6%.
| Range | Selected | |
| Cost of equity | 10.2% - 12.9% | 11.55% |
| Tax rate | 16.6% - 17.5% | 17.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.4% - 11.8% | 10.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.22 | 1.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.2% | 12.9% |
| Tax rate | 16.6% | 17.5% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.4% | 11.8% |
| Selected WACC | 10.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002409.SZ | Jiangsu Yoke Technology Co Ltd | 0.14 | 1.33 | 1.19 |
| 002145.SZ | CNNC Hua Yuan Titanium Dioxide Co Ltd | 0.36 | 1.34 | 1.03 |
| 002324.SZ | Shanghai Pret Composites Co Ltd | 0.43 | 1.45 | 1.07 |
| 002407.SZ | Do-Fluoride Chemicals Co Ltd | 0.64 | 1.37 | 0.89 |
| 002497.SZ | Sichuan Yahua Industrial Group Co Ltd | 0.12 | 1.39 | 1.27 |
| 300699.SZ | Weihai Guangwei Composites Co Ltd | 0.06 | 1.39 | 1.32 |
| 300777.SZ | Sinofibers Technology Co Ltd | 0 | 1.55 | 1.55 |
| 300821.SZ | Shandong Dongyue Organosilicon Materials Co Ltd | 0.1 | 1.46 | 1.35 |
| 603650.SS | Red Avenue New Materials Group Co Ltd | 0.21 | 1.41 | 1.2 |
| 688598.SS | KBC Corporation Ltd | 0.11 | 1.96 | 1.79 |
| Low | High | |
| Unlevered beta | 1.2 | 1.29 |
| Relevered beta | 1.33 | 1.43 |
| Adjusted relevered beta | 1.22 | 1.29 |
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 (11.55%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.22) + 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.