300382.SZ WACC - Weighted Average Cost of Capital
The WACC of Suzhou SLAC Precision Equipment Co Ltd (300382.SZ) is 9.9%.
| Range | Selected | |
| Cost of equity | 9.6% - 12.7% | 11.15% |
| Tax rate | 20.4% - 21.6% | 21% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.6% - 11.2% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.12 | 1.27 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 12.7% |
| Tax rate | 20.4% | 21.6% |
| Debt/Equity ratio | 0.22 | 0.22 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.6% | 11.2% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300382.SZ | Suzhou SLAC Precision Equipment Co Ltd | 0.22 | 1.68 | 1.44 |
| 000410.SZ | Shenyang Machine Tool Co Ltd | 0.07 | 0.91 | 0.86 |
| 002224.SZ | Sanlux Co Ltd | 0.06 | 0.81 | 0.77 |
| 002282.SZ | BOSUN Co Ltd | 0.04 | 0.91 | 0.89 |
| 300435.SZ | Hangzhou Zhongtai Cryogenic Technology Corp | 0.02 | 1.09 | 1.07 |
| 300442.SZ | Shanghai Precise Packaging Co Ltd | 0.22 | 1.46 | 1.25 |
| 300912.SZ | Kailong High Technology Co Ltd | 0.25 | 1.4 | 1.16 |
| 601890.SS | Asian Star Anchor Chain Co Ltd Jiangsu | 0.1 | 0.99 | 0.92 |
| 603076.SS | Ningbo Lehui International Engineering Equipment Co Ltd | 0.3 | 1.77 | 1.43 |
| 688558.SS | Nantong Guosheng Intelligence Technology Group Co Ltd | 0.03 | 1.53 | 1.49 |
| Low | High | |
| Unlevered beta | 1.01 | 1.2 |
| Relevered beta | 1.18 | 1.4 |
| Adjusted relevered beta | 1.12 | 1.27 |
300382.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 300382.SZ:
cost_of_equity (11.15%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.12) + 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.