300843.SZ WACC - Weighted Average Cost of Capital
The WACC of Shenglan Technology Co Ltd (300843.SZ) is 10.8%.
| Range | Selected | |
| Cost of equity | 10.3% - 13.0% | 11.65% |
| Tax rate | 5.3% - 7.8% | 6.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.6% - 12.0% | 10.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.24 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.3% | 13.0% |
| Tax rate | 5.3% | 7.8% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.6% | 12.0% |
| Selected WACC | 10.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300843.SZ | Shenglan Technology Co Ltd | 0.05 | 1.87 | 1.79 |
| 002655.SZ | Gettop Acoustic Co Ltd | 0.1 | 1.27 | 1.16 |
| 002937.SZ | Ningbo Sunrise Elc Technology Co Ltd | 0.09 | 1.41 | 1.3 |
| 300460.SZ | Guangdong Failong Crystal Technology Co Ltd | 0.24 | 1.48 | 1.21 |
| 300647.SZ | Shenzhen Fluence Technology PLC | 0.35 | 1.43 | 1.07 |
| 300811.SZ | POCO Holding Co Ltd | 0.04 | 1 | 0.97 |
| 300852.SZ | Sihui Fuji Electronics Technology Co Ltd | 0.12 | 1.43 | 1.29 |
| 300916.SZ | Shenzhen Longtech Smart Control Co Ltd | 0.06 | 2.05 | 1.95 |
| 600237.SS | Anhui Tongfeng Electronics Co Ltd | 0.02 | 1.21 | 1.19 |
| 688378.SS | Jilin OLED Material Tech Co Ltd | 0.02 | 1.73 | 1.71 |
| Low | High | |
| Unlevered beta | 1.21 | 1.29 |
| Relevered beta | 1.36 | 1.46 |
| Adjusted relevered beta | 1.24 | 1.31 |
300843.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 300843.SZ:
cost_of_equity (11.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.24) + 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.