300615.SZ
Xdc Industries Shenzhen Ltd
Price:  
14.58 
CNY
Volume:  
26,192,360
China | Electronic Equipment, Instruments & Components

300615.SZ WACC - Weighted Average Cost of Capital

The WACC of Xdc Industries Shenzhen Ltd (300615.SZ) is 9.0%.

The Cost of Equity of Xdc Industries Shenzhen Ltd (300615.SZ) is 9.1%.
The Cost of Debt of Xdc Industries Shenzhen Ltd (300615.SZ) is 5%.

RangeSelected
Cost of equity7.8% - 10.4%9.1%
Tax rate16.7% - 18.3%17.5%
Cost of debt5.0% - 5.0%5%
WACC7.8% - 10.3%9.0%
WACC

300615.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.840.95
Additional risk adjustments0.0%0.5%
Cost of equity7.8%10.4%
Tax rate16.7%18.3%
Debt/Equity ratio
0.010.01
Cost of debt5.0%5.0%
After-tax WACC7.8%10.3%
Selected WACC9.0%

300615.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 300615.SZ:

cost_of_equity (9.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.84) + 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.