300299.SZ WACC - Weighted Average Cost of Capital
The WACC of Fuchun Technology Co Ltd (300299.SZ) is 8.6%.
| Range | Selected | |
| Cost of equity | 6.0% - 11.7% | 8.85% |
| Tax rate | 25.3% - 36.2% | 30.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 11.3% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.54 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 11.7% |
| Tax rate | 25.3% | 36.2% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 11.3% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300299.SZ | Fuchun Technology Co Ltd | 0.05 | 1.79 | 1.73 |
| 002425.SZ | Kaiser China Culture Co Ltd | 0.04 | 0.05 | 0.05 |
| 2100.HK | Baioo Family Interactive Ltd | 0.01 | 0.39 | 0.39 |
| 300467.SZ | Sichuan Xunyou Network Technology Co Ltd | 0 | 1.73 | 1.73 |
| 300518.SZ | Shen Zhen Shengxunda Technology Co Ltd | 0.02 | 1.33 | 1.31 |
| 300533.SZ | Shenzhen Bingchuan Network Co Ltd | 0.01 | 1.57 | 1.56 |
| 3798.HK | Homeland Interactive Technology Ltd | 0.02 | -0.2 | -0.2 |
| 600892.SS | Dasheng Times Cultural Investment Co Ltd | 0.05 | 1.09 | 1.05 |
| 6860.HK | FingerTango Inc | 0.05 | 0.18 | 0.18 |
| 797.HK | 7Road Holdings Ltd | 0.2 | -0.84 | -0.74 |
| Low | High | |
| Unlevered beta | 0.3 | 1.16 |
| Relevered beta | 0.31 | 1.19 |
| Adjusted relevered beta | 0.54 | 1.13 |
300299.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 300299.SZ:
cost_of_equity (8.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.54) + 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.