300366.SZ
Troy Information Technology Co Ltd
Price:  
7.95 
CNY
Volume:  
114,132,790.00
China | IT Services
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300366.SZ WACC - Weighted Average Cost of Capital

The WACC of Troy Information Technology Co Ltd (300366.SZ) is 8.0%.

The Cost of Equity of Troy Information Technology Co Ltd (300366.SZ) is 8.65%.
The Cost of Debt of Troy Information Technology Co Ltd (300366.SZ) is 5.00%.

Range Selected
Cost of equity 6.90% - 10.40% 8.65%
Tax rate 4.10% - 6.40% 5.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.6% - 9.5% 8.0%
WACC

300366.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.69 0.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 10.40%
Tax rate 4.10% 6.40%
Debt/Equity ratio 0.19 0.19
Cost of debt 5.00% 5.00%
After-tax WACC 6.6% 9.5%
Selected WACC 8.0%

300366.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 300366.SZ:

cost_of_equity (8.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.69) + 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.