300182.SZ
Beijing Jetsen Technology Co Ltd
Price:  
5.62 
CNY
Volume:  
70,145,900
China | Software

300182.SZ WACC - Weighted Average Cost of Capital

The WACC of Beijing Jetsen Technology Co Ltd (300182.SZ) is 11.4%.

The Cost of Equity of Beijing Jetsen Technology Co Ltd (300182.SZ) is 11.8%.
The Cost of Debt of Beijing Jetsen Technology Co Ltd (300182.SZ) is 5%.

RangeSelected
Cost of equity10.5% - 13.1%11.8%
Tax rate6.0% - 8.8%7.4%
Cost of debt5.0% - 5.0%5%
WACC10.2% - 12.6%11.4%
WACC

300182.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.281.33
Additional risk adjustments0.0%0.5%
Cost of equity10.5%13.1%
Tax rate6.0%8.8%
Debt/Equity ratio
0.070.07
Cost of debt5.0%5.0%
After-tax WACC10.2%12.6%
Selected WACC11.4%

300182.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 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.