300450.SZ
Wuxi Lead Intelligent Equipment Co Ltd
Price:  
24.01 
CNY
Volume:  
32,494,298
China | Electronic Equipment, Instruments & Components

300450.SZ WACC - Weighted Average Cost of Capital

The WACC of Wuxi Lead Intelligent Equipment Co Ltd (300450.SZ) is 9.4%.

The Cost of Equity of Wuxi Lead Intelligent Equipment Co Ltd (300450.SZ) is 10.45%.
The Cost of Debt of Wuxi Lead Intelligent Equipment Co Ltd (300450.SZ) is 5%.

RangeSelected
Cost of equity8.7% - 12.2%10.45%
Tax rate8.0% - 8.6%8.3%
Cost of debt5.0% - 5.0%5%
WACC8.0% - 10.8%9.4%
WACC

300450.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.991.19
Additional risk adjustments0.0%0.5%
Cost of equity8.7%12.2%
Tax rate8.0%8.6%
Debt/Equity ratio
0.220.22
Cost of debt5.0%5.0%
After-tax WACC8.0%10.8%
Selected WACC9.4%

300450.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 300450.SZ:

cost_of_equity (10.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.99) + 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.