300208.SZ WACC - Weighted Average Cost of Capital

The WACC of Qingdao Zhongzi Zhongcheng Group Co Ltd (300208.SZ) is 8.5%.

The Cost of Equity of Qingdao Zhongzi Zhongcheng Group Co Ltd (300208.SZ) is 11.05%.

The Cost of Debt of Qingdao Zhongzi Zhongcheng Group Co Ltd (300208.SZ) is 5.00%.

	Range	Selected
Cost of equity	9.20% - 12.90%	11.05%
Tax rate	14.70% - 37.70%	26.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.5% - 9.5%	8.5%

WACC

300208.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.06	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	12.90%

Tax rate	14.70%	37.70%
Debt/Equity ratio	0.54	0.54
Cost of debt	5.00%	5.00%

After-tax WACC	7.5%	9.5%


Selected WACC	8.5%

300208.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 300208.SZ:

cost_of_equity (11.05%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.06) + 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.