300546.SZ WACC - Weighted Average Cost of Capital
The WACC of Shenzhen Emperor Technology Co Ltd (300546.SZ) is 9.8%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.1% | 9.8% |
| Tax rate | 5.5% - 5.7% | 5.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.4% - 11.1% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.94 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.1% |
| Tax rate | 5.5% | 5.7% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.4% | 11.1% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300546.SZ | Shenzhen Emperor Technology Co Ltd | 0 | 1.73 | 1.73 |
| 002161.SZ | Invengo Information Technology Co Ltd | 0.16 | 0.86 | 0.75 |
| 002289.SZ | Shenzhen Success Electronics Co Ltd | 0.02 | 0.48 | 0.48 |
| 002546.SZ | Nanjing Xinlian Electronics Co Ltd | 0.03 | 1.06 | 1.03 |
| 002835.SZ | Shenzhen TVT Digital Technology Co Ltd | 0.01 | 1.32 | 1.32 |
| 002870.SZ | Guangdong Senssun Weighing Apparatus Group Ltd | 0.7 | 1.05 | 0.63 |
| 1743.HK | Zhejiang Cangnan Instrument Group Co Ltd | 0.06 | 1.08 | 1.02 |
| 300417.SZ | Nanhua Instruments Co Ltd | 0 | 1.54 | 1.54 |
| 603015.SS | Ningbo Techmation Co Ltd | 0.11 | 0.82 | 0.75 |
| 603773.SS | WG Tech JiangXi Co Ltd | 0.35 | 1.48 | 1.11 |
| Low | High | |
| Unlevered beta | 0.91 | 1.06 |
| Relevered beta | 0.91 | 1.06 |
| Adjusted relevered beta | 0.94 | 1.04 |
300546.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 300546.SZ:
cost_of_equity (9.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.94) + 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.