300010.SZ WACC - Weighted Average Cost of Capital
The WACC of DOUSHEN BEIJING EDUCATION &TECHNOLOGY INC (300010.SZ) is 9.1%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.5% | 9.2% |
| Tax rate | 8.8% - 12.6% | 10.7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.9% - 10.4% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.85 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.5% |
| Tax rate | 8.8% | 12.6% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.9% | 10.4% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300010.SZ | DOUSHEN BEIJING EDUCATION &TECHNOLOGY INC | 0 | 0.91 | 0.91 |
| 002184.SZ | Shanghai Hi-Tech Control System Co Ltd | 0.26 | 0.3 | 0.25 |
| 002331.SZ | Anhui Wantong Technology Co Ltd | 0.1 | 0.94 | 0.86 |
| 002647.SZ | Rendong Holdings Co Ltd | 0.19 | 1.12 | 0.96 |
| 002987.SZ | Northking Information Technology Co Ltd | 0 | 1.5 | 1.5 |
| 300002.SZ | Beijing Ultrapower Software Co Ltd | 0 | 1.63 | 1.63 |
| 300020.SZ | Enjoyor Co Ltd | 0.54 | 0.84 | 0.57 |
| 300826.SZ | NanJing Research Institute of Surveying Mapping & Geotechnical Investigation Co Ltd | 0.05 | 1.27 | 1.21 |
| MYEG.KL | My EG Services Bhd | 0.18 | 0.7 | 0.6 |
| VAKRANGEE.NS | Vakrangee Ltd | 0.01 | 0.26 | 0.26 |
| Low | High | |
| Unlevered beta | 0.76 | 0.93 |
| Relevered beta | 0.78 | 0.94 |
| Adjusted relevered beta | 0.85 | 0.96 |
300010.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 300010.SZ:
cost_of_equity (9.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.85) + 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.