300230.SZ WACC - Weighted Average Cost of Capital
The WACC of Shanghai YongLi Belting Co Ltd (300230.SZ) is 9.5%.
| Range | Selected | |
| Cost of equity | 8.7% - 12.0% | 10.35% |
| Tax rate | 12.7% - 14.1% | 13.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 10.9% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.98 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 12.0% |
| Tax rate | 12.7% | 14.1% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 10.9% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300230.SZ | Shanghai YongLi Belting Co Ltd | 0.17 | 1.64 | 1.43 |
| 000551.SZ | Create Technology & Science Co Ltd | 0.13 | 0.96 | 0.86 |
| 002009.SZ | Miracle Automation Engineering Co Ltd | 0.35 | 1.73 | 1.33 |
| 002073.SZ | Mesnac Co Ltd | 0.43 | 1.4 | 1.02 |
| 002527.SZ | Shanghai STEP Electric Corp | 0.16 | 1.54 | 1.35 |
| 002630.SZ | China Western Power Industrial Co Ltd | 1.74 | 0.8 | 0.32 |
| 600526.SS | Zhejiang Feida Environmental Science & Technology Co Ltd | 0.68 | 1.01 | 0.64 |
| 600843.SS | Shang Gong Group Co Ltd | 0.22 | 1.43 | 1.2 |
| 603169.SS | Lanzhou LS Heavy Equipment Co Ltd | 0.47 | 1.01 | 0.72 |
| 603611.SS | Noblelift Intelligent Equipment Co Ltd | 0.37 | 1.08 | 0.82 |
| Low | High | |
| Unlevered beta | 0.84 | 1.09 |
| Relevered beta | 0.97 | 1.25 |
| Adjusted relevered beta | 0.98 | 1.17 |
300230.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 300230.SZ:
cost_of_equity (10.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.98) + 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.