002575.SZ
Guangdong Qunxing Toys Joint Stock Co Ltd
Price:  
9.72 
CNY
Volume:  
29,126,124.00
China | Leisure Products
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

002575.SZ WACC - Weighted Average Cost of Capital

The WACC of Guangdong Qunxing Toys Joint Stock Co Ltd (002575.SZ) is 8.5%.

The Cost of Equity of Guangdong Qunxing Toys Joint Stock Co Ltd (002575.SZ) is 8.45%.
The Cost of Debt of Guangdong Qunxing Toys Joint Stock Co Ltd (002575.SZ) is 5.00%.

Range Selected
Cost of equity 6.80% - 10.10% 8.45%
Tax rate 9.70% - 16.30% 13.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.8% - 10.1% 8.5%
WACC

002575.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.67 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 10.10%
Tax rate 9.70% 16.30%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 6.8% 10.1%
Selected WACC 8.5%

002575.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 002575.SZ:

cost_of_equity (8.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + 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.