300432.SZ WACC - Weighted Average Cost of Capital
The WACC of Mianyang Fulin Precision Co Ltd (300432.SZ) is 11.1%.
| Range | Selected | |
| Cost of equity | 10.4% - 13.6% | 12% |
| Tax rate | 13.2% - 13.9% | 13.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.7% - 12.5% | 11.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.26 | 1.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 13.6% |
| Tax rate | 13.2% | 13.9% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.7% | 12.5% |
| Selected WACC | 11.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300432.SZ | Mianyang Fulin Precision Co Ltd | 0.13 | 1.8 | 1.62 |
| 002031.SZ | Greatoo Intelligent Equipment Inc | 0.07 | 1.63 | 1.53 |
| 002510.SZ | Tianjin Motor Dies Co Ltd | 0.23 | 1.5 | 1.25 |
| 300258.SZ | Jiangsu Pacific Precision Forging Co Ltd | 0.38 | 1.66 | 1.24 |
| 300304.SZ | Jiangsu Yunyi Electric Co Ltd | 0.03 | 1.52 | 1.48 |
| 600523.SS | Guizhou Guihang Automotive Components Co Ltd | 0.03 | 1.48 | 1.45 |
| 603348.SS | Guangdong Wencan Die Casting Co Ltd | 0.34 | 1.61 | 1.24 |
| 605005.SS | CWB Automotive Electronics Co Ltd | 0.01 | 0.75 | 0.75 |
| 605018.SS | Zhejiang Changhua Auto Parts Co Ltd | 0.01 | 1.43 | 1.41 |
| 605333.SS | Kunshan Huguang Auto Harness Co Ltd | 0.25 | 0.85 | 0.7 |
| Low | High | |
| Unlevered beta | 1.25 | 1.43 |
| Relevered beta | 1.39 | 1.58 |
| Adjusted relevered beta | 1.26 | 1.39 |
300432.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 300432.SZ:
cost_of_equity (12.00%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.26) + 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.