300880.SZ WACC - Weighted Average Cost of Capital

The WACC of Ningbo Jianan Electronics Co Ltd (300880.SZ) is 11.2%.

The Cost of Equity of Ningbo Jianan Electronics Co Ltd (300880.SZ) is 11.35%.

The Cost of Debt of Ningbo Jianan Electronics Co Ltd (300880.SZ) is 5.00%.

	Range	Selected
Cost of equity	10.00% - 12.70%	11.35%
Tax rate	13.30% - 13.30%	13.30%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.9% - 12.5%	11.2%

WACC

300880.SZ WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.19	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	12.70%

Tax rate	13.30%	13.30%
Debt/Equity ratio	0.02	0.02
Cost of debt	5.00%	5.00%

After-tax WACC	9.9%	12.5%


Selected WACC	11.2%

300880.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 300880.SZ:

cost_of_equity (11.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.19) + 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.