300270.SZ WACC - Weighted Average Cost of Capital
The WACC of Joyware Electronics Co Ltd (300270.SZ) is 10.3%.
| Range | Selected | |
| Cost of equity | 9.1% - 11.9% | 10.5% |
| Tax rate | 10.0% - 20.6% | 15.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.0% - 11.7% | 10.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.05 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 11.9% |
| Tax rate | 10.0% | 20.6% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.0% | 11.7% |
| Selected WACC | 10.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300270.SZ | Joyware Electronics Co Ltd | 0.03 | 1.56 | 1.53 |
| 002175.SZ | Oriental Times Media Corp | 0.01 | 1 | 0.99 |
| 002289.SZ | Shenzhen Success Electronics Co Ltd | 0.01 | 0.71 | 0.7 |
| 002767.SZ | Hangzhou Innover Technology Co Ltd | 0.05 | 1.22 | 1.17 |
| 002857.SZ | SMS Electric Co Ltd Zhengzhou | 0.06 | 1.36 | 1.29 |
| 1743.HK | Zhejiang Cangnan Instrument Group Co Ltd | 0.06 | 1.08 | 1.02 |
| 300354.SZ | Jiangsu DongHua Testing Technology Co Ltd | 0 | 1.63 | 1.63 |
| 300789.SZ | Chengdu TangYuan Electric Co Ltd | 0.07 | 1.31 | 1.24 |
| 603015.SS | Ningbo Techmation Co Ltd | 0.1 | 0.89 | 0.81 |
| 603773.SS | WG Tech JiangXi Co Ltd | 0.37 | 1.44 | 1.08 |
| Low | High | |
| Unlevered beta | 1.06 | 1.2 |
| Relevered beta | 1.07 | 1.22 |
| Adjusted relevered beta | 1.05 | 1.15 |
300270.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 300270.SZ:
cost_of_equity (10.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.05) + 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.