300044.SZ WACC - Weighted Average Cost of Capital

The WACC of Shenzhen Sunwin Intelligent Co Ltd (300044.SZ) is 9.8%.

The Cost of Equity of Shenzhen Sunwin Intelligent Co Ltd (300044.SZ) is 10.80%.

The Cost of Debt of Shenzhen Sunwin Intelligent Co Ltd (300044.SZ) is 5.00%.

	Range	Selected
Cost of equity	8.40% - 13.20%	10.80%
Tax rate	4.90% - 8.90%	6.90%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.8% - 11.8%	9.8%

WACC

300044.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.93	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	13.20%

Tax rate	4.90%	8.90%
Debt/Equity ratio	0.2	0.2
Cost of debt	5.00%	5.00%

After-tax WACC	7.8%	11.8%


Selected WACC	9.8%

300044.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 300044.SZ:

cost_of_equity (10.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.93) + 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.