300552.SZ WACC - Weighted Average Cost of Capital
The WACC of Vanjee Technology Co Ltd (300552.SZ) is 8.5%.
| Range | Selected | |
| Cost of equity | 7.4% - 9.9% | 8.65% |
| Tax rate | 9.2% - 23.6% | 16.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.3% - 9.7% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.77 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 9.9% |
| Tax rate | 9.2% | 23.6% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.3% | 9.7% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300552.SZ | Vanjee Technology Co Ltd | 0.05 | 1.98 | 1.9 |
| 000536.SZ | CPT Technology Group Co Ltd | 0.25 | 0.84 | 0.69 |
| 002197.SZ | SZZT Electronics Co Ltd | 0.91 | 1.05 | 0.59 |
| 002528.SZ | Shenzhen Infinova Ltd | 0.32 | 0.68 | 0.53 |
| 002869.SZ | Shenzhen Genvict Technologies Co Ltd | 0.01 | 1.32 | 1.3 |
| 300130.SZ | Xgd Inc | 0.03 | 1.79 | 1.74 |
| 300427.SZ | Red Phase INC | 0.02 | 0.47 | 0.46 |
| 600800.SS | Tian Jin Bohai Chemical Co Ltd | 0.4 | 0.91 | 0.67 |
| 603100.SS | Chongqing Chuanyi Automation Co Ltd | 0.09 | 1.01 | 0.93 |
| 603556.SS | Hexing Electrical Co Ltd | 0.06 | 0.33 | 0.31 |
| Low | High | |
| Unlevered beta | 0.64 | 0.79 |
| Relevered beta | 0.66 | 0.82 |
| Adjusted relevered beta | 0.77 | 0.88 |
300552.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 300552.SZ:
cost_of_equity (8.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.77) + 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.