300168.SZ
Wonders Information Co Ltd
Price:  
7.43 
CNY
Volume:  
33,436,724.00
China | IT Services
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300168.SZ WACC - Weighted Average Cost of Capital

The WACC of Wonders Information Co Ltd (300168.SZ) is 9.3%.

The Cost of Equity of Wonders Information Co Ltd (300168.SZ) is 10.45%.
The Cost of Debt of Wonders Information Co Ltd (300168.SZ) is 5.00%.

Range Selected
Cost of equity 8.40% - 12.50% 10.45%
Tax rate 1.50% - 3.90% 2.70%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.7% - 10.9% 9.3%
WACC

300168.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.93 1.24
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 12.50%
Tax rate 1.50% 3.90%
Debt/Equity ratio 0.26 0.26
Cost of debt 5.00% 5.00%
After-tax WACC 7.7% 10.9%
Selected WACC 9.3%

300168.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 300168.SZ:

cost_of_equity (10.45%) = 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.