002484.SZ WACC - Weighted Average Cost of Capital
The WACC of Nantong Jianghai Capacitor Co Ltd (002484.SZ) is 11.4%.
| Range | Selected | |
| Cost of equity | 10.3% - 13.0% | 11.65% |
| Tax rate | 11.4% - 12.0% | 11.7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.1% - 12.7% | 11.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.24 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.3% | 13.0% |
| Tax rate | 11.4% | 12.0% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.1% | 12.7% |
| Selected WACC | 11.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002484.SZ | Nantong Jianghai Capacitor Co Ltd | 0.04 | 1.06 | 1.02 |
| 002176.SZ | Jiangxi Special Electric Motor Co Ltd | 0.18 | 1.53 | 1.32 |
| 002518.SZ | Shenzhen Kstar Science & Technology Co Ltd | 0.07 | 1.61 | 1.51 |
| 002617.SZ | Roshow Technology Co Ltd | 0.22 | 1.83 | 1.53 |
| 002635.SZ | Suzhou Anjie Technology Co Ltd | 0.1 | 1.4 | 1.29 |
| 003021.SZ | Shenzhen Zhaowei Machinery & Electronic Co Ltd | 0.01 | 1.55 | 1.53 |
| 300224.SZ | Yantai Zhenghai Magnetic Material Co Ltd | 0.31 | 1.08 | 0.85 |
| 300602.SZ | Shenzhen FRD Science & Technology Co Ltd | 0.16 | 1.69 | 1.48 |
| 601222.SS | Jiangsu Linyang Energy Co Ltd | 0.47 | 0.57 | 0.41 |
| 603855.SS | Warom Technology Incorporated Co | 0.09 | 1.45 | 1.34 |
| Low | High | |
| Unlevered beta | 1.3 | 1.4 |
| Relevered beta | 1.36 | 1.46 |
| Adjusted relevered beta | 1.24 | 1.31 |
002484.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 002484.SZ:
cost_of_equity (11.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.24) + 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.