300099.SZ
Uroica Precision Information Engineering Co Ltd
Price:  
7.1 
CNY
Volume:  
20,486,424
China | Machinery

300099.SZ WACC - Weighted Average Cost of Capital

The WACC of Uroica Precision Information Engineering Co Ltd (300099.SZ) is 10.1%.

The Cost of Equity of Uroica Precision Information Engineering Co Ltd (300099.SZ) is 10.15%.
The Cost of Debt of Uroica Precision Information Engineering Co Ltd (300099.SZ) is 5%.

RangeSelected
Cost of equity8.4% - 11.9%10.15%
Tax rate9.7% - 11.3%10.5%
Cost of debt5.0% - 5.0%5%
WACC8.4% - 11.8%10.1%
WACC

300099.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.931.15
Additional risk adjustments0.0%0.5%
Cost of equity8.4%11.9%
Tax rate9.7%11.3%
Debt/Equity ratio
00
Cost of debt5.0%5.0%
After-tax WACC8.4%11.8%
Selected WACC10.1%

300099.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 300099.SZ:

cost_of_equity (10.15%) = 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.