300061.SZ WACC - Weighted Average Cost of Capital
The WACC of QITIAN Technology Group Co Ltd (300061.SZ) is 9.1%.
| Range | Selected | |
| Cost of equity | 7.7% - 11.1% | 9.4% |
| Tax rate | 0.5% - 2.4% | 1.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.5% - 10.6% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.82 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 11.1% |
| Tax rate | 0.5% | 2.4% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.5% | 10.6% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300061.SZ | QITIAN Technology Group Co Ltd | 0.08 | 2.44 | 2.26 |
| 1501.HK | Shanghai Kindly Medical Instruments Co Ltd | 0.06 | -0.05 | -0.05 |
| 1763.HK | China Isotope & Radiation Corp | 0.76 | 0.71 | 0.4 |
| 2393.HK | Yestar Healthcare Holdings Co Ltd | 1.84 | 0.49 | 0.17 |
| 300453.SZ | Jiangxi Sanxin Medtec Co Ltd | 0.08 | 1.06 | 0.99 |
| 603309.SS | Well Lead Medical Co Ltd | 0.14 | 1.11 | 0.98 |
| 603880.SS | Jiangsu Nanfang Medical Co Ltd | 0.32 | 1.13 | 0.85 |
| 605369.SS | Zhejiang Gongdong Medical Technology Co Ltd | 0.01 | 1.13 | 1.13 |
| 688013.SS | Touchstone International Medical Science Co Ltd | 0 | 1.32 | 1.32 |
| 688338.SS | Beijing Succeeder Technology Inc | 0 | 1.4 | 1.4 |
| AP4.SI | Riverstone Holdings Ltd | 0 | 0.2 | 0.2 |
| Low | High | |
| Unlevered beta | 0.85 | 0.99 |
| Relevered beta | 0.73 | 1.06 |
| Adjusted relevered beta | 0.82 | 1.04 |
300061.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 300061.SZ:
cost_of_equity (9.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.82) + 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.