300464.SZ WACC - Weighted Average Cost of Capital
The WACC of Guangdong SACA Precision Manufacturing Co Ltd (300464.SZ) is 8.4%.
| Range | Selected | |
| Cost of equity | 7.7% - 11.0% | 9.35% |
| Tax rate | 5.6% - 9.7% | 7.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.1% - 9.7% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.83 | 1.03 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 11.0% |
| Tax rate | 5.6% | 9.7% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.1% | 9.7% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300464.SZ | Guangdong SACA Precision Manufacturing Co Ltd | 0.26 | 1.46 | 1.17 |
| 000811.SZ | Moon Environment Technology Co Ltd | 0.17 | 1.31 | 1.13 |
| 000837.SZ | Qinchuan Machine Tool & Tool Group Share Co Ltd | 0.12 | 1.5 | 1.35 |
| 002527.SZ | Shanghai STEP Electric Corp | 0.15 | 1.49 | 1.3 |
| 002630.SZ | China Western Power Industrial Co Ltd | 1.63 | 0.73 | 0.29 |
| 002786.SZ | Shenzhen Silver Basis Technology Co Ltd | 0.41 | 0.81 | 0.59 |
| 1651.HK | Precision Tsugami (China) Corporation Ltd | 0 | 0.58 | 0.58 |
| 2060.HK | Pujiang International Group Ltd | 15.6 | 0.21 | 0.01 |
| 600526.SS | Zhejiang Feida Environmental Science & Technology Co Ltd | 0.65 | 0.97 | 0.6 |
| 603169.SS | Lanzhou LS Heavy Equipment Co Ltd | 0.47 | 0.94 | 0.65 |
| Low | High | |
| Unlevered beta | 0.6 | 0.84 |
| Relevered beta | 0.75 | 1.04 |
| Adjusted relevered beta | 0.83 | 1.03 |
300464.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 300464.SZ:
cost_of_equity (9.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.83) + 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.