002635.SZ WACC - Weighted Average Cost of Capital
The WACC of Suzhou Anjie Technology Co Ltd (002635.SZ) is 11.1%.
| Range | Selected | |
| Cost of equity | 10.4% - 13.2% | 11.8% |
| Tax rate | 3.0% - 6.2% | 4.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.9% - 12.4% | 11.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.26 | 1.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 13.2% |
| Tax rate | 3.0% | 6.2% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.9% | 12.4% |
| Selected WACC | 11.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002635.SZ | Suzhou Anjie Technology Co Ltd | 0.11 | 1.42 | 1.28 |
| 000541.SZ | Foshan Electrical and Lighting Co Ltd | 0.34 | 1.17 | 0.88 |
| 002130.SZ | Shenzhen Woer Heat-Shrinkable Material Co Ltd | 0.09 | 1.71 | 1.57 |
| 002176.SZ | Jiangxi Special Electric Motor Co Ltd | 0.18 | 1.53 | 1.3 |
| 002484.SZ | Nantong Jianghai Capacitor Co Ltd | 0.04 | 1.03 | 1 |
| 002518.SZ | Shenzhen Kstar Science & Technology Co Ltd | 0.08 | 1.6 | 1.49 |
| 002617.SZ | Roshow Technology Co Ltd | 0.21 | 1.84 | 1.53 |
| 300438.SZ | Guangzhou Great Power Energy and Technology Co Ltd | 0.5 | 1.81 | 1.22 |
| 300602.SZ | Shenzhen FRD Science & Technology Co Ltd | 0.17 | 1.71 | 1.46 |
| 601222.SS | Jiangsu Linyang Energy Co Ltd | 0.47 | 0.56 | 0.38 |
| Low | High | |
| Unlevered beta | 1.26 | 1.36 |
| Relevered beta | 1.39 | 1.51 |
| Adjusted relevered beta | 1.26 | 1.34 |
002635.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 002635.SZ:
cost_of_equity (11.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.26) + 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.