300752.SZ WACC - Weighted Average Cost of Capital
The WACC of Shenzhen Longli Technology Co Ltd (300752.SZ) is 10.6%.
| Range | Selected | |
| Cost of equity | 9.4% - 12.5% | 10.95% |
| Tax rate | 11.7% - 12.2% | 11.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.2% - 12.1% | 10.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.09 | 1.23 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.4% | 12.5% |
| Tax rate | 11.7% | 12.2% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.2% | 12.1% |
| Selected WACC | 10.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300752.SZ | Shenzhen Longli Technology Co Ltd | 0.05 | 1.63 | 1.56 |
| 002992.SZ | Shenzhen Baoming Technology Co Ltd | 0.07 | 1.65 | 1.55 |
| 300102.SZ | Xiamen Changelight Co Ltd | 0.17 | 1.43 | 1.24 |
| 300111.SZ | Zhejiang Sunflower Great Health Limited Liability Company | 0.02 | 1.45 | 1.42 |
| 300241.SZ | Shenzhen Refond Optoelectronics Co Ltd | 0.14 | 1.54 | 1.37 |
| 300301.SZ | Shenzhen Changfang Group Co Ltd | 0.22 | 0.97 | 0.81 |
| 300708.SZ | Focus Lightings Tech Co Ltd | 0.18 | 1.1 | 0.95 |
| 600360.SS | JiLin Sino Microelectronics Co Ltd | 0.3 | 1.05 | 0.83 |
| 603421.SS | Qingdao Topscomm Communication Inc | 0.19 | 0.82 | 0.7 |
| 603933.SS | Fujian Raynen Technology Co Ltd | 0.18 | 1.38 | 1.19 |
| Low | High | |
| Unlevered beta | 1.09 | 1.29 |
| Relevered beta | 1.13 | 1.34 |
| Adjusted relevered beta | 1.09 | 1.23 |
300752.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 300752.SZ:
cost_of_equity (10.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.09) + 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.