300096.SZ WACC - Weighted Average Cost of Capital
The WACC of YLZ Information Technology Co Ltd (300096.SZ) is 10.1%.
| Range | Selected | |
| Cost of equity | 8.6% - 11.6% | 10.1% |
| Tax rate | 11.8% - 12.8% | 12.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.6% - 11.6% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.97 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 11.6% |
| Tax rate | 11.8% | 12.8% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.6% | 11.6% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300096.SZ | YLZ Information Technology Co Ltd | 0.01 | 1.02 | 1.02 |
| 1588.HK | Chanjet Information Technology Co Ltd | 0 | 0.69 | 0.69 |
| 300209.SZ | TIZA Information Industry Corporation Inc | 0.01 | 0.34 | 0.34 |
| 300359.SZ | Qtone Education Group Guangdong Co Ltd | 0.01 | 1.79 | 1.78 |
| 300513.SZ | Beijing E-techstar Co Ltd | 0.4 | 1.48 | 1.1 |
| 300532.SZ | New Trend International Logis-Tech Co Ltd | 0.07 | 1.36 | 1.27 |
| 600571.SS | Sunyard Technology Co Ltd | 0 | 1.47 | 1.46 |
| 603636.SS | Linewell Software Co Ltd | 0.24 | 1.03 | 0.85 |
| 603918.SS | Shanghai Golden Bridge Info Tech Co Ltd | 0.01 | 1.64 | 1.63 |
| 688555.SS | Essence Information Technology Co Ltd | 1.37 | -1.25 | -0.56 |
| Low | High | |
| Unlevered beta | 0.95 | 1.17 |
| Relevered beta | 0.96 | 1.18 |
| Adjusted relevered beta | 0.97 | 1.12 |
300096.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 300096.SZ:
cost_of_equity (10.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.97) + 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.