002544.SZ WACC - Weighted Average Cost of Capital
The WACC of Gci Science & Technology Co Ltd (002544.SZ) is 9.0%.
| Range | Selected | |
| Cost of equity | 8.1% - 11.2% | 9.65% |
| Tax rate | 17.8% - 28.6% | 23.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 10.4% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.89 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 11.2% |
| Tax rate | 17.8% | 28.6% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 10.4% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002544.SZ | Gci Science & Technology Co Ltd | 0.12 | 1.41 | 1.29 |
| 000070.SZ | Shenzhen SDG Information Co Ltd | 0.48 | 1.02 | 0.74 |
| 002396.SZ | Fujian Star-net Communication Co Ltd | 0.27 | 1.21 | 1 |
| 002583.SZ | Hytera Communications Corp Ltd | 0.11 | 1.67 | 1.54 |
| 1300.HK | Trigiant Group Ltd | 2.84 | 0.42 | 0.13 |
| 600198.SS | Datang Telecom Technology Co Ltd | 0.03 | 0.62 | 0.6 |
| 600775.SS | Nanjing Panda Electronics Co Ltd | 0.03 | 1.26 | 1.24 |
| 601869.SS | Yangtze Optical Fibre and Cable Joint Stock Ltd Co | 0.56 | 1.11 | 0.77 |
| 603118.SS | Shenzhen Gongjin Electronics Co Ltd | 0.31 | 0.91 | 0.74 |
| 603660.SS | Suzhou Keda Technology Co Ltd | 0.15 | 1.1 | 0.99 |
| Low | High | |
| Unlevered beta | 0.76 | 0.99 |
| Relevered beta | 0.84 | 1.09 |
| Adjusted relevered beta | 0.89 | 1.06 |
002544.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 002544.SZ:
cost_of_equity (9.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.89) + 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.