300515.SZ WACC - Weighted Average Cost of Capital
The WACC of Hunan Sundy Science and Technology Co Ltd (300515.SZ) is 11.9%.
| Range | Selected | |
| Cost of equity | 10.5% - 13.4% | 11.95% |
| Tax rate | 10.8% - 11.9% | 11.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.5% - 13.3% | 11.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.28 | 1.36 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.5% | 13.4% |
| Tax rate | 10.8% | 11.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.5% | 13.3% |
| Selected WACC | 11.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300515.SZ | Hunan Sundy Science and Technology Co Ltd | 0.01 | 1.6 | 1.59 |
| 002289.SZ | Shenzhen Success Electronics Co Ltd | 0.01 | 0.71 | 0.7 |
| 002767.SZ | Hangzhou Innover Technology Co Ltd | 0.05 | 1.22 | 1.17 |
| 300270.SZ | Joyware Electronics Co Ltd | 0.03 | 1.56 | 1.53 |
| 300354.SZ | Jiangsu DongHua Testing Technology Co Ltd | 0 | 1.63 | 1.63 |
| 300371.SZ | Huizhong Instrumentation Co Ltd | 0.01 | 1.5 | 1.48 |
| 300789.SZ | Chengdu TangYuan Electric Co Ltd | 0.07 | 1.31 | 1.24 |
| 300897.SZ | Hangzhou Seck Intelligent Technology Co Ltd | 0.03 | 1.58 | 1.54 |
| 688551.SS | Hefei Kewell Power System Co Ltd | 0.07 | 1.78 | 1.67 |
| 688600.SS | Anhui Wanyi Science and Technology Co Ltd | 0.01 | 1.31 | 1.3 |
| Low | High | |
| Unlevered beta | 1.41 | 1.53 |
| Relevered beta | 1.42 | 1.54 |
| Adjusted relevered beta | 1.28 | 1.36 |
300515.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 300515.SZ:
cost_of_equity (11.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.28) + 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.