300682.SZ WACC - Weighted Average Cost of Capital

The WACC of Longshine Technology Group Co Ltd (300682.SZ) is 11.5%.

The Cost of Equity of Longshine Technology Group Co Ltd (300682.SZ) is 11.65%.

The Cost of Debt of Longshine Technology Group Co Ltd (300682.SZ) is 5.00%.

	Range	Selected
Cost of equity	10.40% - 12.90%	11.65%
Tax rate	3.80% - 7.50%	5.65%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.3% - 12.7%	11.5%

WACC

300682.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.27	1.3

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	12.90%

Tax rate	3.80%	7.50%
Debt/Equity ratio	0.02	0.02
Cost of debt	5.00%	5.00%

After-tax WACC	10.3%	12.7%


Selected WACC	11.5%

300682.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 300682.SZ:

cost_of_equity (11.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.27) + 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.