300317.SZ
Jiawei Renewable Energy Co Ltd
Price:  
4.16 
CNY
Volume:  
25,121,400.00
China | Electrical Equipment
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300317.SZ WACC - Weighted Average Cost of Capital

The WACC of Jiawei Renewable Energy Co Ltd (300317.SZ) is 9.7%.

The Cost of Equity of Jiawei Renewable Energy Co Ltd (300317.SZ) is 10.80%.
The Cost of Debt of Jiawei Renewable Energy Co Ltd (300317.SZ) is 5.00%.

Range Selected
Cost of equity 8.80% - 12.80% 10.80%
Tax rate 2.30% - 8.70% 5.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.1% - 11.3% 9.7%
WACC

300317.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1 1.28
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 12.80%
Tax rate 2.30% 8.70%
Debt/Equity ratio 0.22 0.22
Cost of debt 5.00% 5.00%
After-tax WACC 8.1% 11.3%
Selected WACC 9.7%

300317.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 300317.SZ:

cost_of_equity (10.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1) + 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.