300249.SZ
Yimikang Tech Group Co Ltd
Price:  
14.19 
CNY
Volume:  
25,635,800.00
China | Household Durables
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300249.SZ WACC - Weighted Average Cost of Capital

The WACC of Yimikang Tech Group Co Ltd (300249.SZ) is 8.2%.

The Cost of Equity of Yimikang Tech Group Co Ltd (300249.SZ) is 8.55%.
The Cost of Debt of Yimikang Tech Group Co Ltd (300249.SZ) is 5.00%.

Range Selected
Cost of equity 6.80% - 10.30% 8.55%
Tax rate 7.60% - 8.70% 8.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.7% - 9.8% 8.2%
WACC

300249.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.68 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 10.30%
Tax rate 7.60% 8.70%
Debt/Equity ratio 0.09 0.09
Cost of debt 5.00% 5.00%
After-tax WACC 6.7% 9.8%
Selected WACC 8.2%

300249.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 300249.SZ:

cost_of_equity (8.55%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.68) + 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.