300733.SZ WACC - Weighted Average Cost of Capital
The WACC of Chengdu Xiling Power Science & Technology Incorporated Co (300733.SZ) is 9.2%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.3% | 9.9% |
| Tax rate | 6.0% - 12.5% | 9.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.1% - 10.4% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.96 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.3% |
| Tax rate | 6.0% | 12.5% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.1% | 10.4% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300733.SZ | Chengdu Xiling Power Science & Technology Incorporated Co | 0.14 | 1.45 | 1.28 |
| 002265.SZ | Yunnan Xiyi Industrial Co Ltd | 0.09 | 0.92 | 0.85 |
| 003033.SZ | Qingdao CHOHO Industrial Co Ltd | 0.17 | 0.85 | 0.73 |
| 300681.SZ | Zhuhai Enpower Electric Co Ltd | 0.28 | 1.78 | 1.41 |
| 300742.SZ | Nanjing YueBoo Power System Co Ltd | 41.71 | 1.41 | 0.04 |
| 300893.SZ | Zhejiang Songyuan Automotive Safety Systems Co Ltd | 0.16 | 0.91 | 0.79 |
| 300926.SZ | Jiangsu Bojun Industrial Technology Co Ltd | 0.31 | 1.36 | 1.05 |
| 600698.SS | Hunan Tyen Machinery Co Ltd | 0 | 0.67 | 0.67 |
| 603121.SS | Shanghai Sinotec Co Ltd | 0.07 | 1.16 | 1.09 |
| 603701.SS | Zhejiang Dehong Automotive Electronic & Electrical Co Ltd | 0.03 | 0.95 | 0.92 |
| Low | High | |
| Unlevered beta | 0.82 | 0.98 |
| Relevered beta | 0.94 | 1.1 |
| Adjusted relevered beta | 0.96 | 1.07 |
300733.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 300733.SZ:
cost_of_equity (9.90%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.96) + 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.