300420.SZ WACC - Weighted Average Cost of Capital
The WACC of Jiangsu Wuyang Parking Industry Group Co Ltd (300420.SZ) is 9.5%.
| Range | Selected | |
| Cost of equity | 8.5% - 10.9% | 9.7% |
| Tax rate | 4.1% - 7.6% | 5.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.4% - 10.7% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.95 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 10.9% |
| Tax rate | 4.1% | 7.6% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.4% | 10.7% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300420.SZ | Jiangsu Wuyang Parking Industry Group Co Ltd | 0.04 | 1.77 | 1.71 |
| 000777.SZ | SUFA Technology Industry Co Ltd CNNC | 0.08 | 1.1 | 1.02 |
| 002224.SZ | Sanlux Co Ltd | 0.06 | 0.84 | 0.79 |
| 002270.SZ | Huaming Power Equipment Co Ltd | 0.05 | 0.98 | 0.93 |
| 300137.SZ | Hebei Sailhero Environmental Protection High-tech Co Ltd | 0.01 | 0.97 | 0.96 |
| 300293.SZ | Shenyang Blue Silver Industry Automatic Equipment Co Ltd | 0.04 | 1.31 | 1.26 |
| 300385.SZ | Wuxi Xuelang Environmental Technology Co Ltd | 0.72 | 1.2 | 0.71 |
| 603283.SS | Suzhou Secote Precision Electronic Co Ltd | 0.17 | 1.64 | 1.42 |
| 603339.SS | Square Technology Group Co Ltd | 0 | 0.84 | 0.84 |
| 603757.SS | Zhejiang Dayuan Pumps Industry Co Ltd | 0.15 | 0.91 | 0.8 |
| Low | High | |
| Unlevered beta | 0.9 | 0.98 |
| Relevered beta | 0.93 | 1.01 |
| Adjusted relevered beta | 0.95 | 1.01 |
300420.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 300420.SZ:
cost_of_equity (9.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.