300301.SZ WACC - Weighted Average Cost of Capital
The WACC of Shenzhen Changfang Group Co Ltd (300301.SZ) is 9.7%.
| Range | Selected | |
| Cost of equity | 8.5% - 13.2% | 10.85% |
| Tax rate | 7.2% - 28.7% | 17.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.8% - 11.5% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.95 | 1.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 13.2% |
| Tax rate | 7.2% | 28.7% |
| Debt/Equity ratio | 0.22 | 0.22 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.8% | 11.5% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300301.SZ | Shenzhen Changfang Group Co Ltd | 0.22 | 0.97 | 0.81 |
| 002218.SZ | Shenzhen Topraysolar Co Ltd | 0.47 | 1.03 | 0.72 |
| 002992.SZ | Shenzhen Baoming Technology Co Ltd | 0.07 | 1.65 | 1.55 |
| 1679.HK | Risecomm Group Holdings Ltd | 7.35 | 0 | 0 |
| 300111.SZ | Zhejiang Sunflower Great Health Limited Liability Company | 0.02 | 1.45 | 1.42 |
| 300241.SZ | Shenzhen Refond Optoelectronics Co Ltd | 0.14 | 1.54 | 1.37 |
| 300752.SZ | Shenzhen Longli Technology Co Ltd | 0.05 | 1.63 | 1.56 |
| 603421.SS | Qingdao Topscomm Communication Inc | 0.19 | 0.82 | 0.7 |
| 603933.SS | Fujian Raynen Technology Co Ltd | 0.18 | 1.38 | 1.19 |
| 712.HK | Comtec Solar Systems Group Ltd | 2.16 | 1.35 | 0.46 |
| Low | High | |
| Unlevered beta | 0.77 | 1.26 |
| Relevered beta | 0.93 | 1.51 |
| Adjusted relevered beta | 0.95 | 1.34 |
300301.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 300301.SZ:
cost_of_equity (10.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.