300724.SZ WACC - Weighted Average Cost of Capital
The WACC of Shenzhen SC New Energy Technology Corp (300724.SZ) is 12.8%.
| Range | Selected | |
| Cost of equity | 11.5% - 14.4% | 12.95% |
| Tax rate | 11.9% - 12.4% | 12.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 11.4% - 14.3% | 12.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.44 | 1.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.5% | 14.4% |
| Tax rate | 11.9% | 12.4% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 11.4% | 14.3% |
| Selected WACC | 12.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300724.SZ | Shenzhen SC New Energy Technology Corp | 0.02 | 1.95 | 1.92 |
| 300223.SZ | Ingenic Semiconductor Co Ltd | 0 | 1.84 | 1.84 |
| 300474.SZ | Changsha Jingjia Microelectronics Co Ltd | 0.01 | 1.87 | 1.86 |
| 300661.SZ | SG Micro Corp | 0 | 1.61 | 1.61 |
| 600460.SS | Hangzhou Silan Microelectronics Co Ltd | 0.15 | 1.27 | 1.12 |
| 601908.SS | Beijing Jingyuntong Technology Co Ltd | 0.73 | 2.03 | 1.24 |
| 603290.SS | StarPower Semiconductor Ltd | 0.08 | 1.76 | 1.64 |
| 603893.SS | Fuzhou Rockchip Electronics Co Ltd | 0 | 1.49 | 1.49 |
| 688099.SS | Amlogic Shanghai Co Ltd | 0 | 1.67 | 1.67 |
| 688536.SS | 3Peak Inc | 0.02 | 1.88 | 1.85 |
| Low | High | |
| Unlevered beta | 1.63 | 1.74 |
| Relevered beta | 1.66 | 1.76 |
| Adjusted relevered beta | 1.44 | 1.51 |
300724.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 300724.SZ:
cost_of_equity (12.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.44) + 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.