002892.SZ WACC - Weighted Average Cost of Capital
The WACC of Keli Motor Group Co Ltd (002892.SZ) is 8.4%.
| Range | Selected | |
| Cost of equity | 7.4% - 9.7% | 8.55% |
| Tax rate | 9.0% - 10.5% | 9.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.3% - 9.5% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.77 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 9.7% |
| Tax rate | 9.0% | 10.5% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.3% | 9.5% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002892.SZ | Keli Motor Group Co Ltd | 0.05 | 1.86 | 1.78 |
| 000806.SZ | Galaxy Biomedical Investment Co Ltd | 0.86 | -0.12 | -0.07 |
| 002141.SZ | Infund Holding Co Ltd | 0.09 | -0.13 | -0.12 |
| 002606.SZ | Dalian Insulator Group Co Ltd | 0.15 | 0.78 | 0.68 |
| 002879.SZ | Chang Lan Electric Technology Co Ltd | 0.04 | 1.13 | 1.09 |
| 300827.SZ | Sineng Electric Co Ltd | 0.4 | 0.75 | 0.55 |
| 600379.SS | Shaanxi Baoguang Vacuum Electronic Apparatus Co Ltd | 0.11 | 0.77 | 0.7 |
| 603115.SS | Nantong Haixing Electronics Co Ltd | 0.03 | 0.83 | 0.81 |
| 603133.SS | Tanyuan Technology Co Ltd | 2 | 1.07 | 0.38 |
| 605277.SS | Xinya Electronic Co Ltd | 0.24 | 1.46 | 1.19 |
| Low | High | |
| Unlevered beta | 0.63 | 0.74 |
| Relevered beta | 0.66 | 0.78 |
| Adjusted relevered beta | 0.77 | 0.85 |
002892.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 002892.SZ:
cost_of_equity (8.55%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.77) + 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.