300168.SZ WACC - Weighted Average Cost of Capital

The WACC of Wonders Information Co Ltd (300168.SZ) is 9.5%.

The Cost of Equity of Wonders Information Co Ltd (300168.SZ) is 10.55%.

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

	Range	Selected
Cost of equity	8.60% - 12.50%	10.55%
Tax rate	1.50% - 3.90%	2.70%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.9% - 11.1%	9.5%

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	0.97	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	12.50%

Tax rate	1.50%	3.90%
Debt/Equity ratio	0.23	0.23
Cost of debt	5.00%	5.00%

After-tax WACC	7.9%	11.1%


Selected WACC	9.5%

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 (10.55%) = 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.