300416.SZ WACC - Weighted Average Cost of Capital
The WACC of Suzhou Sushi Testing Group Co Ltd (300416.SZ) is 11.0%.
| Range | Selected | |
| Cost of equity | 10.5% - 13.5% | 12% |
| Tax rate | 8.6% - 9.5% | 9.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.7% - 12.3% | 11.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.28 | 1.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.5% | 13.5% |
| Tax rate | 8.6% | 9.5% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.7% | 12.3% |
| Selected WACC | 11.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300416.SZ | Suzhou Sushi Testing Group Co Ltd | 0.16 | 1.68 | 1.47 |
| 002197.SZ | SZZT Electronics Co Ltd | 0.68 | 0.98 | 0.61 |
| 002308.SZ | Vtron Group Co Ltd | 0.38 | 1.63 | 1.21 |
| 002362.SZ | Hanwang Technology Co Ltd | 0.03 | 1.4 | 1.36 |
| 300066.SZ | Sanchuan Wisdom Technology Co Ltd | 0 | 1.49 | 1.48 |
| 300259.SZ | Suntront Technology Co Ltd | 0 | 1.57 | 1.56 |
| 300427.SZ | Red Phase INC | 0.02 | 0.56 | 0.55 |
| 300531.SZ | Urovo Technology Co Ltd | 0.07 | 1.48 | 1.39 |
| 300771.SZ | Shenzhen Zhilai Sci and Tech Co Ltd | 0.06 | 1.32 | 1.26 |
| 600071.SS | Phenix Optics Co Ltd | 0.14 | 1.14 | 1.01 |
| Low | High | |
| Unlevered beta | 1.24 | 1.37 |
| Relevered beta | 1.42 | 1.58 |
| Adjusted relevered beta | 1.28 | 1.39 |
300416.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 300416.SZ:
cost_of_equity (12.00%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.28) + 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.