300391.SZ WACC - Weighted Average Cost of Capital
The WACC of Kangyue Technology Co Ltd (300391.SZ) is 10.1%.
| Range | Selected | |
| Cost of equity | 11.6% - 17.3% | 14.45% |
| Tax rate | 2.6% - 7.7% | 5.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.6% - 11.6% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.46 | 1.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.6% | 17.3% |
| Tax rate | 2.6% | 7.7% |
| Debt/Equity ratio | 0.81 | 0.81 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.6% | 11.6% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300391.SZ | Kangyue Technology Co Ltd | 0.81 | 1.69 | 0.95 |
| 002813.SZ | Shenzhen RoadRover Technology Co Ltd | 0.02 | 1.25 | 1.23 |
| 002865.SZ | Hainan Drinda Automotive Trim Co Ltd | 0.68 | 1.55 | 0.94 |
| 003033.SZ | Qingdao CHOHO Industrial Co Ltd | 0.17 | 0.85 | 0.73 |
| 300304.SZ | Jiangsu Yunyi Electric Co Ltd | 0.03 | 1.51 | 1.47 |
| 300507.SZ | Jiangsu Olive Sensors High-Tech Co Ltd | 0.07 | 1.73 | 1.62 |
| 300580.SZ | Wuxi Best Precision Machinery Co Ltd | 0 | 1.8 | 1.8 |
| 300893.SZ | Zhejiang Songyuan Automotive Safety Systems Co Ltd | 0.16 | 0.91 | 0.79 |
| 300928.SZ | HAXC Holdings Beijing Co Ltd | 0.02 | 1.62 | 1.59 |
| 600698.SS | Hunan Tyen Machinery Co Ltd | 0 | 0.67 | 0.67 |
| Low | High | |
| Unlevered beta | 0.94 | 1.32 |
| Relevered beta | 1.69 | 2.36 |
| Adjusted relevered beta | 1.46 | 1.91 |
300391.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 300391.SZ:
cost_of_equity (14.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.46) + 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.