002913.SZ WACC - Weighted Average Cost of Capital

The WACC of Aoshikang Technology Co Ltd (002913.SZ) is 10.4%.

The Cost of Equity of Aoshikang Technology Co Ltd (002913.SZ) is 11.85%.

The Cost of Debt of Aoshikang Technology Co Ltd (002913.SZ) is 5.00%.

	Range	Selected
Cost of equity	10.50% - 13.20%	11.85%
Tax rate	10.70% - 10.90%	10.80%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.3% - 11.6%	10.4%

WACC

002913.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.27	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.20%

Tax rate	10.70%	10.90%
Debt/Equity ratio	0.23	0.23
Cost of debt	5.00%	5.00%

After-tax WACC	9.3%	11.6%


Selected WACC	10.4%

002913.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 002913.SZ:

cost_of_equity (11.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.27) + 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.