002933.SZ
Beijing Emerging Eastern Aviation Equipment Co Ltd
Price:  
34.71 
CNY
Volume:  
4,530,800
China | Aerospace & Defense

002933.SZ WACC - Weighted Average Cost of Capital

The WACC of Beijing Emerging Eastern Aviation Equipment Co Ltd (002933.SZ) is 10.5%.

The Cost of Equity of Beijing Emerging Eastern Aviation Equipment Co Ltd (002933.SZ) is 11.35%.
The Cost of Debt of Beijing Emerging Eastern Aviation Equipment Co Ltd (002933.SZ) is 5%.

RangeSelected
Cost of equity9.8% - 12.9%11.35%
Tax rate15.0% - 25.7%20.35%
Cost of debt5.0% - 5.0%5%
WACC9.1% - 11.9%10.5%
WACC

002933.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.161.29
Additional risk adjustments0.0%0.5%
Cost of equity9.8%12.9%
Tax rate15.0%25.7%
Debt/Equity ratio
0.130.13
Cost of debt5.0%5.0%
After-tax WACC9.1%11.9%
Selected WACC10.5%

002933.SZ WACC - Detailed calculations of Beta

LowHigh
Unlevered beta1.121.3
Relevered beta1.241.43
Adjusted relevered beta1.161.29

002933.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 002933.SZ:

cost_of_equity (11.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.16) + 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.