300046.SZ WACC - Weighted Average Cost of Capital
The WACC of Tech Semiconductors Co Ltd (300046.SZ) is 10.0%.
| Range | Selected | |
| Cost of equity | 8.2% - 11.9% | 10.05% |
| Tax rate | 9.9% - 13.8% | 11.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.2% - 11.9% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.9 | 1.16 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 11.9% |
| Tax rate | 9.9% | 13.8% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.2% | 11.9% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300046.SZ | Tech Semiconductors Co Ltd | 0 | 1.85 | 1.85 |
| 002218.SZ | Shenzhen Topraysolar Co Ltd | 0.47 | 1.03 | 0.73 |
| 1679.HK | Risecomm Group Holdings Ltd | 7.35 | 0 | 0 |
| 300077.SZ | Nations Technologies Inc | 0.13 | 1.33 | 1.2 |
| 300139.SZ | Beijing Xiaocheng Technology Stock Co Ltd | 0 | 0.72 | 0.72 |
| 300831.SZ | Xi An Peri Power Semiconductor Converting Technology Co Ltd | 0 | 1.29 | 1.28 |
| 603105.SS | Zhejiang Sunoren Solar Technology Co Ltd | 0.47 | 1.3 | 0.93 |
| 688589.SS | Leaguer Shenzhen MicroElectronics Corp | 0.11 | 1.84 | 1.69 |
| 688689.SS | Changzhou Galaxy Century Microelectronics Co Ltd | 0.17 | 1.73 | 1.51 |
| 712.HK | Comtec Solar Systems Group Ltd | 2.16 | 1.35 | 0.47 |
| Low | High | |
| Unlevered beta | 0.85 | 1.23 |
| Relevered beta | 0.85 | 1.24 |
| Adjusted relevered beta | 0.9 | 1.16 |
300046.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 300046.SZ:
cost_of_equity (10.05%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.9) + 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.