300510.SZ
Jilin Jinguan Electric Co Ltd
Price:  
3.95 
CNY
Volume:  
18,555,248.00
China | Electrical Equipment
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300510.SZ WACC - Weighted Average Cost of Capital

The WACC of Jilin Jinguan Electric Co Ltd (300510.SZ) is 7.8%.

The Cost of Equity of Jilin Jinguan Electric Co Ltd (300510.SZ) is 8.70%.
The Cost of Debt of Jilin Jinguan Electric Co Ltd (300510.SZ) is 5.00%.

Range Selected
Cost of equity 7.30% - 10.10% 8.70%
Tax rate 11.00% - 29.80% 20.40%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.7% - 8.8% 7.8%
WACC

300510.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.75 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 10.10%
Tax rate 11.00% 29.80%
Debt/Equity ratio 0.24 0.24
Cost of debt 5.00% 5.00%
After-tax WACC 6.7% 8.8%
Selected WACC 7.8%

300510.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 300510.SZ:

cost_of_equity (8.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.75) + 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.