The WACC of Beijing Jetsen Technology Co Ltd (300182.SZ) is 11.4%.
Range | Selected | |
Cost of equity | 10.5% - 13.1% | 11.8% |
Tax rate | 6.0% - 8.8% | 7.4% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 10.2% - 12.6% | 11.4% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 1.28 | 1.33 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.5% | 13.1% |
Tax rate | 6.0% | 8.8% |
Debt/Equity ratio | 0.07 | 0.07 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 10.2% | 12.6% |
Selected WACC | 11.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
300182.SZ | Beijing Jetsen Technology Co Ltd | 0.07 | 1.54 | 1.45 |
000606.SZ | Shunliban Information Service Co Ltd | 0.07 | -0.43 | -0.4 |
002123.SZ | Montnets Cloud Technology Group Co Ltd | 0.12 | 1.2 | 1.08 |
002279.SZ | Beijing Join-Cheer Software Co Ltd | 0 | 1.57 | 1.56 |
1297.HK | Sinosoft Technology Group Ltd | 0.14 | 0.49 | 0.44 |
300036.SZ | Beijing SuperMap Software Co Ltd | 0 | 1.56 | 1.56 |
300571.SZ | Hangzhou Anysoft Information Technology Co Ltd | 0.39 | 1.75 | 1.29 |
300608.SZ | SI-TECH Information Technology Co Ltd | 0.18 | 1.59 | 1.37 |
603533.SS | IReader Technology Co Ltd | 0 | 1.5 | 1.5 |
688095.SS | Fujian Foxit Software Development Joint Stock Co Ltd | 0.01 | 1.38 | 1.37 |
Low | High | |
Unlevered beta | 1.34 | 1.4 |
Relevered beta | 1.42 | 1.49 |
Adjusted relevered beta | 1.28 | 1.33 |
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 300182.SZ:
cost_of_equity (11.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.28) + 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.