002631.SZ WACC - Weighted Average Cost of Capital
The WACC of Der Future Science and Technology Holding Group Co Ltd (002631.SZ) is 9.2%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.4% | 9.95% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.9% - 10.5% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.95 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.4% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.9% | 10.5% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002631.SZ | Der Future Science and Technology Holding Group Co Ltd | 0.14 | 1.16 | 1.05 |
| 002084.SZ | Guangzhou Seagull Kitchen and Bath Products Co Ltd | 0.56 | 0.81 | 0.57 |
| 002162.SZ | Everjoy Health Group Co Ltd | 0.17 | 1.25 | 1.11 |
| 002686.SZ | Zhejiang Yilida Ventilator Co Ltd | 0.31 | 1.14 | 0.92 |
| 002790.SZ | Xiamen R&T Plumbing Technology Co Ltd | 0.04 | 1.83 | 1.78 |
| 003011.SZ | Zhejiang Walrus New Material Co Ltd | 0.32 | 1.25 | 1.01 |
| 300260.SZ | Kunshan Kinglai Hygienic Materials Co Ltd | 0.13 | 1.65 | 1.51 |
| 600876.SS | Luoyang Glass Co Ltd | 1.31 | 1.1 | 0.56 |
| 603856.SS | Shandong Donghong Pipe Industry Co Ltd | 0.28 | 0.86 | 0.71 |
| 603992.SS | Xiamen Solex High-Tech Industries Co Ltd | 0.04 | 0.68 | 0.66 |
| Low | High | |
| Unlevered beta | 0.84 | 1.02 |
| Relevered beta | 0.93 | 1.13 |
| Adjusted relevered beta | 0.95 | 1.09 |
002631.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 002631.SZ:
cost_of_equity (9.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.