300776.SZ
Wuhan DR Laser Technology Corp Ltd
Price:  
56.21 
CNY
Volume:  
1,294,078
China | Electronic Equipment, Instruments & Components

300776.SZ WACC - Weighted Average Cost of Capital

The WACC of Wuhan DR Laser Technology Corp Ltd (300776.SZ) is 11.1%.

The Cost of Equity of Wuhan DR Laser Technology Corp Ltd (300776.SZ) is 11.45%.
The Cost of Debt of Wuhan DR Laser Technology Corp Ltd (300776.SZ) is 5%.

RangeSelected
Cost of equity10.1% - 12.8%11.45%
Tax rate10.5% - 11.7%11.1%
Cost of debt5.0% - 5.0%5%
WACC9.8% - 12.4%11.1%
WACC

300776.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta1.221.28
Additional risk adjustments0.0%0.5%
Cost of equity10.1%12.8%
Tax rate10.5%11.7%
Debt/Equity ratio
0.060.06
Cost of debt5.0%5.0%
After-tax WACC9.8%12.4%
Selected WACC11.1%

300776.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 300776.SZ:

cost_of_equity (11.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.22) + 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.