002614.SZ WACC - Weighted Average Cost of Capital
The WACC of Xiamen Comfort Science & Technology Group Co Ltd (002614.SZ) is 9.7%.
| Range | Selected | |
| Cost of equity | 10.6% - 13.8% | 12.2% |
| Tax rate | 17.9% - 22.1% | 20% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.6% - 10.7% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.3 | 1.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.6% | 13.8% |
| Tax rate | 17.9% | 22.1% |
| Debt/Equity ratio | 0.45 | 0.45 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.6% | 10.7% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002614.SZ | Xiamen Comfort Science & Technology Group Co Ltd | 0.45 | 1.29 | 0.95 |
| 002105.SZ | HL Corp Shenzhen | 0.13 | 1.35 | 1.23 |
| 002292.SZ | Alpha Group | 0.05 | 1.72 | 1.65 |
| 002489.SZ | Yotrio Group Co Ltd | 0.29 | 1.21 | 0.98 |
| 002678.SZ | Guangzhou Pearl River Piano Group Co Ltd | 0.04 | 1.34 | 1.3 |
| 1086.HK | Goodbaby International Holdings Ltd | 0.89 | 1.41 | 0.83 |
| 300005.SZ | Toread Holdings Group Co Ltd | 0.01 | 1.24 | 1.23 |
| 300043.SZ | Rastar Group | 0.31 | 1.48 | 1.18 |
| 603129.SS | Zhejiang CFMoto Power Co Ltd | 0.11 | 0.32 | 0.3 |
| 603579.SS | Shanghai Rongtai Health Technology Corp Ltd | 0.23 | 1.32 | 1.12 |
| Low | High | |
| Unlevered beta | 1.07 | 1.2 |
| Relevered beta | 1.45 | 1.63 |
| Adjusted relevered beta | 1.3 | 1.42 |
002614.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 002614.SZ:
cost_of_equity (12.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.3) + 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.