300043.SZ WACC - Weighted Average Cost of Capital

The WACC of Rastar Group (300043.SZ) is 10.3%.

The Cost of Equity of Rastar Group (300043.SZ) is 13.15%.

The Cost of Debt of Rastar Group (300043.SZ) is 5.00%.

	Range	Selected
Cost of equity	11.60% - 14.70%	13.15%
Tax rate	15.90% - 24.40%	20.15%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.3% - 11.3%	10.3%

WACC

300043.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.46	1.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	14.70%

Tax rate	15.90%	24.40%
Debt/Equity ratio	0.44	0.44
Cost of debt	5.00%	5.00%

After-tax WACC	9.3%	11.3%


Selected WACC	10.3%

300043.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 300043.SZ:

cost_of_equity (13.15%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.46) + 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.