300562.SZ WACC - Weighted Average Cost of Capital

The WACC of Guangdong Transtek Medical Electronics Co Ltd (300562.SZ) is 11.4%.

The Cost of Equity of Guangdong Transtek Medical Electronics Co Ltd (300562.SZ) is 12.15%.

The Cost of Debt of Guangdong Transtek Medical Electronics Co Ltd (300562.SZ) is 5.00%.

	Range	Selected
Cost of equity	10.40% - 13.90%	12.15%
Tax rate	5.70% - 9.20%	7.45%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.8% - 13.0%	11.4%

WACC

300562.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.26	1.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	13.90%

Tax rate	5.70%	9.20%
Debt/Equity ratio	0.11	0.11
Cost of debt	5.00%	5.00%

After-tax WACC	9.8%	13.0%


Selected WACC	11.4%

300562.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 300562.SZ:

cost_of_equity (12.15%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.26) + 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.