300229.SZ WACC - Weighted Average Cost of Capital
The WACC of TRS Information Technology Co Ltd (300229.SZ) is 11.6%.
| Range | Selected | |
| Cost of equity | 10.1% - 13.2% | 11.65% |
| Tax rate | 6.7% - 8.6% | 7.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.1% - 13.2% | 11.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.21 | 1.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 13.2% |
| Tax rate | 6.7% | 8.6% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.1% | 13.2% |
| Selected WACC | 11.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300229.SZ | TRS Information Technology Co Ltd | 0 | 1.63 | 1.63 |
| 000606.SZ | Shunliban Information Service Co Ltd | 0.07 | -0.43 | -0.4 |
| 002777.SZ | Sichuan Jiuyuan Yinhai Software Co Ltd | 0 | 1.58 | 1.58 |
| 003007.SZ | Beijing ZZNodeTechnologies Co Ltd | 0.01 | 1.23 | 1.22 |
| 1297.HK | Sinosoft Technology Group Ltd | 0.14 | 0.49 | 0.44 |
| 1745.HK | Lvji Technology Holdings Inc | 0.24 | 1.43 | 1.17 |
| 300036.SZ | Beijing SuperMap Software Co Ltd | 0 | 1.56 | 1.55 |
| 300598.SZ | ArcherMind Technology Nanjing Co Ltd | 0.07 | 1.47 | 1.38 |
| 300624.SZ | Wondershare Technology Group Co Ltd | 0.01 | 2.07 | 2.06 |
| 688579.SS | Dareway Software Co Ltd | 0 | 1.46 | 1.46 |
| Low | High | |
| Unlevered beta | 1.32 | 1.5 |
| Relevered beta | 1.31 | 1.49 |
| Adjusted relevered beta | 1.21 | 1.33 |
300229.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 300229.SZ:
cost_of_equity (11.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.21) + 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.