300065.SZ WACC - Weighted Average Cost of Capital
The WACC of Beijing Highlander Digital Technology Co Ltd (300065.SZ) is 10.3%.
| Range | Selected | |
| Cost of equity | 9.1% - 11.7% | 10.4% |
| Tax rate | 11.0% - 18.6% | 14.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.0% - 11.6% | 10.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.05 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 11.7% |
| Tax rate | 11.0% | 18.6% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.0% | 11.6% |
| Selected WACC | 10.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300065.SZ | Beijing Highlander Digital Technology Co Ltd | 0.01 | 1.69 | 1.68 |
| 002161.SZ | Invengo Information Technology Co Ltd | 0.16 | 0.88 | 0.78 |
| 002197.SZ | SZZT Electronics Co Ltd | 0.83 | 0.95 | 0.57 |
| 002546.SZ | Nanjing Xinlian Electronics Co Ltd | 0.04 | 1.03 | 1 |
| 300202.SZ | Julong Co Ltd | 0.66 | 1.65 | 1.07 |
| 300360.SZ | Hangzhou Sunrise Technology Co Ltd | 0.03 | 1.11 | 1.08 |
| 300531.SZ | Urovo Technology Co Ltd | 0.08 | 1.45 | 1.36 |
| 300771.SZ | Shenzhen Zhilai Sci and Tech Co Ltd | 0.05 | 1.36 | 1.3 |
| 600071.SS | Phenix Optics Co Ltd | 0.14 | 1.17 | 1.05 |
| 603297.SS | Ningbo Yongxin Optics Co Ltd | 0.01 | 1.69 | 1.68 |
| Low | High | |
| Unlevered beta | 1.06 | 1.17 |
| Relevered beta | 1.07 | 1.18 |
| Adjusted relevered beta | 1.05 | 1.12 |
300065.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 300065.SZ:
cost_of_equity (10.40%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.05) + 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.