002980.SZ WACC - Weighted Average Cost of Capital
The WACC of Shenzhen Everbest Machinery Industry Co Ltd (002980.SZ) is 11.2%.
| Range | Selected | |
| Cost of equity | 10.1% - 12.7% | 11.4% |
| Tax rate | 7.7% - 9.8% | 8.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.9% - 12.5% | 11.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.2 | 1.27 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 12.7% |
| Tax rate | 7.7% | 9.8% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.9% | 12.5% |
| Selected WACC | 11.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002980.SZ | Shenzhen Everbest Machinery Industry Co Ltd | 0.03 | 0.77 | 0.75 |
| 002829.SZ | Beijing StarNeto Technology Co Ltd | 0.08 | 1.54 | 1.43 |
| 300368.SZ | Hebei Huijin Group Co Ltd | 0.08 | 1.41 | 1.31 |
| 300516.SZ | Hubei Jiuzhiyang Infrared System Co Ltd | 0.01 | 1.17 | 1.16 |
| 300800.SZ | Lihero Technology Co Ltd | 0.01 | 1.3 | 1.29 |
| 300802.SZ | Jutze Intelligent Technology Co Ltd | 0.02 | 1.47 | 1.45 |
| 300862.SZ | Anhui Landun Photoelectron Co Ltd | 0.04 | 1.85 | 1.78 |
| 603516.SS | Beijing Tricolor Technology Co Ltd | 0 | 1.8 | 1.8 |
| 688003.SS | Suzhou TZTEK Technology Co Ltd | 0.11 | 1.16 | 1.05 |
| 688330.SS | Shanghai Holy Star Information Technology Co Ltd | 0.03 | 1.28 | 1.24 |
| Low | High | |
| Unlevered beta | 1.27 | 1.36 |
| Relevered beta | 1.3 | 1.4 |
| Adjusted relevered beta | 1.2 | 1.27 |
002980.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 002980.SZ:
cost_of_equity (11.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.2) + 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.