002658.SZ
Beijing SDL Technology Co Ltd
Price:  
9.38 
CNY
Volume:  
143,657,950
China | Electronic Equipment, Instruments & Components

002658.SZ WACC - Weighted Average Cost of Capital

The WACC of Beijing SDL Technology Co Ltd (002658.SZ) is 11.4%.

The Cost of Equity of Beijing SDL Technology Co Ltd (002658.SZ) is 11.4%.
The Cost of Debt of Beijing SDL Technology Co Ltd (002658.SZ) is 5%.

RangeSelected
Cost of equity9.9% - 12.9%11.4%
Tax rate13.0% - 13.8%13.4%
Cost of debt5.0% - 5.0%5%
WACC9.8% - 12.9%11.4%
WACC

002658.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.171.3
Additional risk adjustments0.0%0.5%
Cost of equity9.9%12.9%
Tax rate13.0%13.8%
Debt/Equity ratio
00
Cost of debt5.0%5.0%
After-tax WACC9.8%12.9%
Selected WACC11.4%

002658.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 002658.SZ:

cost_of_equity (11.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.17) + 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.