002416.SZ WACC - Weighted Average Cost of Capital
The WACC of Shenzhen Aisidi Co Ltd (002416.SZ) is 8.8%.
| Range | Selected | |
| Cost of equity | 8.0% - 11.4% | 9.7% |
| Tax rate | 18.5% - 18.9% | 18.7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.3% - 10.2% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.86 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 11.4% |
| Tax rate | 18.5% | 18.9% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.3% | 10.2% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002416.SZ | Shenzhen Aisidi Co Ltd | 0.19 | 0.82 | 0.71 |
| 000829.SZ | Telling Telecommunication Holding Co Ltd | 1.62 | 0.93 | 0.4 |
| 002819.SZ | Beijing Oriental Jicheng Co Ltd | 0.05 | 1.15 | 1.1 |
| 300184.SZ | Wuhan P&S Information Technology Co Ltd | 0.1 | 1.69 | 1.57 |
| 3107.T | Daiwabo Holdings Co Ltd | 0.1 | 0.98 | 0.91 |
| 600082.SS | Tianjin Hi-Tech Development Co Ltd | 0.4 | 0.86 | 0.65 |
| 600751.SS | HNA Technology Co Ltd | 0.01 | 1.09 | 1.08 |
| 8106.HK | Shenghua Lande Scitech Ltd | 0.59 | 0.53 | 0.36 |
| 8205.HK | Shanghai Jiaoda Withub Information Industrial Co Ltd | 0.01 | 1.21 | 1.2 |
| 856.HK | VSTECS Holdings Ltd | 1 | 1.16 | 0.64 |
| Low | High | |
| Unlevered beta | 0.69 | 0.97 |
| Relevered beta | 0.79 | 1.12 |
| Adjusted relevered beta | 0.86 | 1.08 |
002416.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 002416.SZ:
cost_of_equity (9.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.86) + 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.