300473.SZ WACC - Weighted Average Cost of Capital
The WACC of Fuxin Dare Automotive Parts Co Ltd (300473.SZ) is 9.5%.
| Range | Selected | |
| Cost of equity | 9.3% - 11.7% | 10.5% |
| Tax rate | 7.7% - 11.9% | 9.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.5% - 10.5% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.07 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 11.7% |
| Tax rate | 7.7% | 11.9% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.5% | 10.5% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300473.SZ | Fuxin Dare Automotive Parts Co Ltd | 0.2 | 0.83 | 0.71 |
| 000757.SZ | Sichuan Haowu Electromechanical Co Ltd | 0.21 | 1.24 | 1.04 |
| 002284.SZ | Zhejiang Asia-Pacific Mechanical & Electronic Co Ltd | 0.29 | 1.45 | 1.15 |
| 002328.SZ | Shanghai Xinpeng Industry Co Ltd | 0.16 | 1.14 | 1 |
| 002454.SZ | Songz Automobile Air Conditioning Co Ltd | 0.3 | 1.2 | 0.94 |
| 002593.SZ | Xiamen Sunrise Group Co Ltd | 0.5 | 1.73 | 1.19 |
| 002662.SZ | Beijing WKW Automotive Parts Co Ltd | 0.11 | 1.46 | 1.33 |
| 002863.SZ | Zhejiang Jinfei Kaida Wheel Co Ltd | 1.43 | 1.3 | 0.57 |
| 600960.SS | Bohai Automotive Systems Co Ltd | 0.45 | 1.33 | 0.95 |
| 603197.SS | Shanghai Baolong Automotive Corp | 0.61 | 1.23 | 0.79 |
| Low | High | |
| Unlevered beta | 0.94 | 1.01 |
| Relevered beta | 1.1 | 1.19 |
| Adjusted relevered beta | 1.07 | 1.13 |
300473.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 300473.SZ:
cost_of_equity (10.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.07) + 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.