300192.SZ
Suzhou Kingswood Education Technology Co Ltd
Price:  
16.15 
CNY
Volume:  
46,437,920.00
China | Chemicals
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300192.SZ WACC - Weighted Average Cost of Capital

The WACC of Suzhou Kingswood Education Technology Co Ltd (300192.SZ) is 10.6%.

The Cost of Equity of Suzhou Kingswood Education Technology Co Ltd (300192.SZ) is 10.65%.
The Cost of Debt of Suzhou Kingswood Education Technology Co Ltd (300192.SZ) is 5.00%.

Range Selected
Cost of equity 9.50% - 11.80% 10.65%
Tax rate 16.70% - 18.30% 17.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.5% - 11.7% 10.6%
WACC

300192.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.12 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.50% 11.80%
Tax rate 16.70% 18.30%
Debt/Equity ratio 0.02 0.02
Cost of debt 5.00% 5.00%
After-tax WACC 9.5% 11.7%
Selected WACC 10.6%

300192.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 300192.SZ:

cost_of_equity (10.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.12) + 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.