300264.SZ WACC - Weighted Average Cost of Capital
The WACC of AVIT Ltd (300264.SZ) is 7.9%.
| Range | Selected | |
| Cost of equity | 5.7% - 10.5% | 8.1% |
| Tax rate | 0.0% - 0.2% | 0.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 10.2% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.5 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 10.5% |
| Tax rate | 0.0% | 0.2% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 10.2% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300264.SZ | AVIT Ltd | 0.06 | 1.5 | 1.41 |
| 002089.SZ | New Sea Union Technology Group Co Ltd | 1.65 | 0.45 | 0.17 |
| 002231.SZ | Allwin Telecommunication Co Ltd | 0.03 | 1.41 | 1.37 |
| 002417.SZ | SUNA Co Ltd | 0.06 | -1.07 | -1.01 |
| 1202.HK | Chengdu PUTIAN Telecommunications Cable Co Ltd | 0.03 | 0.29 | 0.28 |
| 300050.SZ | Dingli Corp Ltd | 0.01 | 1.4 | 1.39 |
| 300167.SZ | Shenzhen Dvision Co Ltd | 0.09 | 1.43 | 1.31 |
| 300312.SZ | Boomsense Technology Co Ltd | 1.43 | 0.02 | 0.01 |
| 300555.SZ | Lootom Telcovideo Network Wuxi Co Ltd | 0 | 0.59 | 0.59 |
| SMTRACK.KL | SMTrack Bhd | 0.7 | -0.89 | -0.52 |
| Low | High | |
| Unlevered beta | 0.24 | 0.88 |
| Relevered beta | 0.25 | 0.93 |
| Adjusted relevered beta | 0.5 | 0.95 |
300264.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 300264.SZ:
cost_of_equity (8.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.5) + 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.