300840.SZ WACC - Weighted Average Cost of Capital
The WACC of Qingdao Kutesmart Co Ltd (300840.SZ) is 9.2%.
| Range | Selected | |
| Cost of equity | 6.9% - 11.6% | 9.25% |
| Tax rate | 14.8% - 18.7% | 16.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.9% - 11.5% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.7 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 11.6% |
| Tax rate | 14.8% | 18.7% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.9% | 11.5% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300840.SZ | Qingdao Kutesmart Co Ltd | 0.01 | 1.32 | 1.31 |
| 002634.SZ | Zhejiang Bangjie Holding Group Co Ltd | 0.84 | 1.4 | 0.83 |
| 002762.SZ | Jinfa Labi Maternity & Baby Articles Co Ltd | 0.01 | 1.24 | 1.23 |
| 1247.HK | Miko International Holdings Ltd | 0.06 | -0.54 | -0.52 |
| 1425.HK | Justin Allen Holdings Ltd | 0.03 | 0.1 | 0.09 |
| 1532.HK | China Partytime Culture Holdings Ltd | 0.15 | 0.12 | 0.11 |
| 1906.HK | Bonny International Holding Ltd | 0.35 | -0.47 | -0.36 |
| 300591.SZ | Guangdong Wanlima Industry Co Ltd | 0.04 | 1.91 | 1.86 |
| 600107.SS | Hubei Mailyard Share Co Ltd | 0.13 | 1.49 | 1.34 |
| 603665.SS | ZheJiang KangLongDa Special Protection Technology Co Ltd | 0.35 | 1.43 | 1.11 |
| Low | High | |
| Unlevered beta | 0.54 | 1.16 |
| Relevered beta | 0.55 | 1.18 |
| Adjusted relevered beta | 0.7 | 1.12 |
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 (9.25%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.7) + 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.