300840.SZ
Qingdao Kutesmart Co Ltd
Price:  
20.97 
CNY
Volume:  
9,979,143.00
China | Textiles, Apparel & Luxury Goods
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300840.SZ WACC - Weighted Average Cost of Capital

The WACC of Qingdao Kutesmart Co Ltd (300840.SZ) is 9.2%.

The Cost of Equity of Qingdao Kutesmart Co Ltd (300840.SZ) is 9.30%.
The Cost of Debt of Qingdao Kutesmart Co Ltd (300840.SZ) is 5.00%.

Range Selected
Cost of equity 6.90% - 11.70% 9.30%
Tax rate 14.80% - 18.70% 16.75%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.9% - 11.6% 9.2%
WACC

300840.SZ WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.69 1.12
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 11.70%
Tax rate 14.80% 18.70%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 6.9% 11.6%
Selected WACC 9.2%

300840.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 300840.SZ:

cost_of_equity (9.30%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.69) + 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.