300652.SZ WACC - Weighted Average Cost of Capital
The WACC of Hang Zhou Radical Energy-Saving Technology Co Ltd (300652.SZ) is 9.2%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.8% | 9.3% |
| Tax rate | 12.5% - 13.1% | 12.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 10.7% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.83 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.8% |
| Tax rate | 12.5% | 13.1% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 10.7% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300652.SZ | Hang Zhou Radical Energy-Saving Technology Co Ltd | 0.02 | 1.76 | 1.73 |
| 000622.SZ | Hengli Industrial Development Group Co Ltd | 0.07 | 0.51 | 0.48 |
| 003033.SZ | Qingdao CHOHO Industrial Co Ltd | 0.14 | 0.84 | 0.75 |
| 2025.HK | Ruifeng Power Group Company Ltd | 0.16 | 0.16 | 0.14 |
| 300585.SZ | NanJing AoLian AE&EA Co Ltd | 0.02 | 1.59 | 1.57 |
| 300643.SZ | Hamaton Automotive Technology Co Ltd | 0.02 | 1.79 | 1.76 |
| 300742.SZ | Nanjing YueBoo Power System Co Ltd | 41.71 | 1.41 | 0.04 |
| 600698.SS | Hunan Tyen Machinery Co Ltd | 0 | 0.72 | 0.72 |
| 603037.SS | Shanghai Carthane Co Ltd | 0.02 | 1.08 | 1.06 |
| 603701.SS | Zhejiang Dehong Automotive Electronic & Electrical Co Ltd | 0.03 | 0.97 | 0.95 |
| Low | High | |
| Unlevered beta | 0.73 | 0.99 |
| Relevered beta | 0.75 | 1.01 |
| Adjusted relevered beta | 0.83 | 1.01 |
300652.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 300652.SZ:
cost_of_equity (9.30%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.83) + 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.