300021.SZ
Dayu Water-saving Group Co Ltd
Price:  
5.09 
CNY
Volume:  
90,470,590.00
China | Machinery
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300021.SZ WACC - Weighted Average Cost of Capital

The WACC of Dayu Water-saving Group Co Ltd (300021.SZ) is 8.6%.

The Cost of Equity of Dayu Water-saving Group Co Ltd (300021.SZ) is 11.75%.
The Cost of Debt of Dayu Water-saving Group Co Ltd (300021.SZ) is 5.00%.

Range Selected
Cost of equity 10.20% - 13.30% 11.75%
Tax rate 21.50% - 23.10% 22.30%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.7% - 9.5% 8.6%
WACC

300021.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.23 1.35
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.20% 13.30%
Tax rate 21.50% 23.10%
Debt/Equity ratio 0.67 0.67
Cost of debt 5.00% 5.00%
After-tax WACC 7.7% 9.5%
Selected WACC 8.6%

300021.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 300021.SZ:

cost_of_equity (11.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.23) + 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.