002782.SZ
Shenzhen Click Technology Co Ltd
Price:  
13.11 
CNY
Volume:  
7,616,000
China | Electrical Equipment

002782.SZ WACC - Weighted Average Cost of Capital

The WACC of Shenzhen Click Technology Co Ltd (002782.SZ) is 10.5%.

The Cost of Equity of Shenzhen Click Technology Co Ltd (002782.SZ) is 11.25%.
The Cost of Debt of Shenzhen Click Technology Co Ltd (002782.SZ) is 5%.

RangeSelected
Cost of equity9.8% - 12.7%11.25%
Tax rate18.9% - 22.2%20.55%
Cost of debt5.0% - 5.0%5%
WACC9.2% - 11.8%10.5%
WACC

002782.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.171.26
Additional risk adjustments0.0%0.5%
Cost of equity9.8%12.7%
Tax rate18.9%22.2%
Debt/Equity ratio
0.110.11
Cost of debt5.0%5.0%
After-tax WACC9.2%11.8%
Selected WACC10.5%

002782.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 002782.SZ:

cost_of_equity (11.25%) = 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.