300322.SZ WACC - Weighted Average Cost of Capital
The WACC of Huizhou Speed Wireless Technology Co Ltd (300322.SZ) is 9.9%.
| Range | Selected | |
| Cost of equity | 8.7% - 12.8% | 10.75% |
| Tax rate | 4.1% - 9.4% | 6.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.1% - 11.6% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.98 | 1.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 12.8% |
| Tax rate | 4.1% | 9.4% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.1% | 11.6% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300322.SZ | Huizhou Speed Wireless Technology Co Ltd | 0.17 | 2.03 | 1.74 |
| 000561.SZ | Shaanxi Fenghuo Electronics Co Ltd | 0.13 | 0.67 | 0.6 |
| 000836.SZ | Tianjin Futong Information Science & Technology Co Ltd | 2.17 | 1.74 | 0.57 |
| 002383.SZ | Beijing UniStrong Science & Technology Co Ltd | 0.06 | 1.64 | 1.54 |
| 002446.SZ | Guangdong Shenglu Telecommunication Tech Co Ltd | 0.07 | 1.5 | 1.4 |
| 002792.SZ | Tongyu Communication Inc | 0.04 | 1.15 | 1.11 |
| 002881.SZ | MeiG Smart Technology Co Ltd | 0.03 | 0.89 | 0.87 |
| 300504.SZ | Sichuan Tianyi Comheart Telecom Co Ltd | 0.03 | 1.76 | 1.71 |
| 600198.SS | Datang Telecom Technology Co Ltd | 0.03 | 0.54 | 0.53 |
| 603703.SS | Zhejiang Shengyang Science and Technology Co Ltd | 0.17 | 0.9 | 0.77 |
| Low | High | |
| Unlevered beta | 0.83 | 1.23 |
| Relevered beta | 0.97 | 1.43 |
| Adjusted relevered beta | 0.98 | 1.29 |
300322.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 300322.SZ:
cost_of_equity (10.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.98) + 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.