300376.SZ WACC - Weighted Average Cost of Capital
The WACC of East Group Co Ltd (300376.SZ) is 8.0%.
| Range | Selected | |
| Cost of equity | 7.8% - 11.2% | 9.5% |
| Tax rate | 12.8% - 15.6% | 14.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.8% - 9.2% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.84 | 1.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 11.2% |
| Tax rate | 12.8% | 15.6% |
| Debt/Equity ratio | 0.4 | 0.4 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.8% | 9.2% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300376.SZ | East Group Co Ltd | 0.4 | 1.47 | 1.09 |
| 000682.SZ | Dongfang Electronics Co Ltd | 0.05 | 0.63 | 0.6 |
| 002617.SZ | Roshow Technology Co Ltd | 0.21 | 1.82 | 1.54 |
| 002635.SZ | Suzhou Anjie Technology Co Ltd | 0.11 | 1.42 | 1.3 |
| 002733.SZ | Shenzhen Center Power Tech Co Ltd | 0.23 | 0.6 | 0.5 |
| 002851.SZ | Shenzhen Megmeet Electrical Co Ltd | 0.12 | 1.51 | 1.36 |
| 601126.SS | Beijing Sifang Automation Co Ltd | 0.08 | 0.64 | 0.59 |
| 601222.SS | Jiangsu Linyang Energy Co Ltd | 0.47 | 0.57 | 0.41 |
| 603606.SS | Ningbo Orient Wires & Cables Co Ltd | 0.08 | 0.54 | 0.5 |
| 688408.SS | Arctech Solar Holding Co Ltd | 0.4 | 0.7 | 0.52 |
| Low | High | |
| Unlevered beta | 0.56 | 0.8 |
| Relevered beta | 0.76 | 1.07 |
| Adjusted relevered beta | 0.84 | 1.05 |
300376.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 300376.SZ:
cost_of_equity (9.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.84) + 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.