002792.SZ WACC - Weighted Average Cost of Capital
The WACC of Tongyu Communication Inc (002792.SZ) is 9.5%.
| Range | Selected | |
| Cost of equity | 8.4% - 11.1% | 9.75% |
| Tax rate | 7.3% - 10.0% | 8.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.2% - 10.9% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.93 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 11.1% |
| Tax rate | 7.3% | 10.0% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.2% | 10.9% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002792.SZ | Tongyu Communication Inc | 0.04 | 1.17 | 1.13 |
| 000561.SZ | Shaanxi Fenghuo Electronics Co Ltd | 0.16 | 0.7 | 0.61 |
| 000836.SZ | Tianjin Futong Information Science & Technology Co Ltd | 2.17 | 1.74 | 0.59 |
| 002383.SZ | Beijing UniStrong Science & Technology Co Ltd | 0.07 | 1.75 | 1.65 |
| 002446.SZ | Guangdong Shenglu Telecommunication Tech Co Ltd | 0.08 | 1.54 | 1.44 |
| 002881.SZ | MeiG Smart Technology Co Ltd | 0.03 | 0.94 | 0.91 |
| 300322.SZ | Huizhou Speed Wireless Technology Co Ltd | 0.18 | 2.05 | 1.76 |
| 600198.SS | Datang Telecom Technology Co Ltd | 0.03 | 0.61 | 0.6 |
| 603660.SS | Suzhou Keda Technology Co Ltd | 0.16 | 1.1 | 0.96 |
| 603703.SS | Zhejiang Shengyang Science and Technology Co Ltd | 0.17 | 0.91 | 0.79 |
| Low | High | |
| Unlevered beta | 0.86 | 1.03 |
| Relevered beta | 0.9 | 1.06 |
| Adjusted relevered beta | 0.93 | 1.04 |
002792.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 002792.SZ:
cost_of_equity (9.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.93) + 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.