300312.SZ WACC - Weighted Average Cost of Capital
The WACC of Boomsense Technology Co Ltd (300312.SZ) is 7.6%.
| Range | Selected | |
| Cost of equity | 8.6% - 14.9% | 11.75% |
| Tax rate | 4.8% - 6.7% | 5.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.3% - 8.9% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.4% | 6.4% |
| Adjusted beta | 1.06 | 1.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 14.9% |
| Tax rate | 4.8% | 6.7% |
| Debt/Equity ratio | 1.43 | 1.43 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.3% | 8.9% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300312.SZ | Boomsense Technology Co Ltd | 1.43 | 0.02 | 0.01 |
| 300050.SZ | Dingli Corp Ltd | 0.01 | 1.4 | 1.39 |
| 300167.SZ | Shenzhen Dvision Co Ltd | 0.09 | 1.43 | 1.32 |
| 300264.SZ | AVIT Ltd | 0.06 | 1.5 | 1.42 |
| 300555.SZ | Lootom Telcovideo Network Wuxi Co Ltd | 0 | 0.59 | 0.59 |
| 300710.SZ | Hangzhou Prevail Optoelectronic Equipment Co Ltd | 0.06 | 1.47 | 1.39 |
| 300711.SZ | GHT Co Ltd | 0 | 1.96 | 1.95 |
| 688080.SS | Beijing InHand Networks Technology Co Ltd | 0.01 | 1.76 | 1.74 |
| 8227.HK | XI an Haitian Antenna Technologies Co Ltd | 0.01 | -0.3 | -0.3 |
| 8245.HK | On Real International Holdings Ltd | 0.15 | 0.76 | 0.66 |
| Low | High | |
| Unlevered beta | 1.06 | 1.39 |
| Relevered beta | 1.09 | 2.07 |
| Adjusted relevered beta | 1.06 | 1.72 |
300312.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 300312.SZ:
cost_of_equity (11.75%) = risk_free_rate (3.05%) + equity_risk_premium (5.90%) * adjusted_beta (1.06) + 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.