300902.SZ WACC - Weighted Average Cost of Capital
The WACC of Guoanda Co Ltd (300902.SZ) is 10.6%.
| Range | Selected | |
| Cost of equity | 9.1% - 12.1% | 10.6% |
| Tax rate | 15.1% - 17.1% | 16.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.1% - 12.1% | 10.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.04 | 1.19 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 12.1% |
| Tax rate | 15.1% | 17.1% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.1% | 12.1% |
| Selected WACC | 10.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 300902.SZ | Guoanda Co Ltd | 0 | 1.85 | 1.84 |
| 002161.SZ | Invengo Information Technology Co Ltd | 0.2 | 0.91 | 0.78 |
| 002546.SZ | Nanjing Xinlian Electronics Co Ltd | 0.04 | 1.05 | 1.02 |
| 002972.SZ | Shenzhen Keanda Electronic Technology Corp Ltd | 0.02 | 0.97 | 0.96 |
| 300480.SZ | GL Tech Co Ltd | 0.09 | 1.77 | 1.65 |
| 300906.SZ | Jiangxi Everbright Measurement and Control Technology Co Ltd | 0.01 | 1.36 | 1.35 |
| 603015.SS | Ningbo Techmation Co Ltd | 0.1 | 0.89 | 0.82 |
| 603773.SS | WG Tech JiangXi Co Ltd | 0.37 | 1.44 | 1.09 |
| 688160.SS | Kinco Automation Shanghai Co Ltd | 0.01 | 2.06 | 2.05 |
| 688312.SS | Shenzhen Yanmade Technology Inc | 0.01 | 1.23 | 1.23 |
| Low | High | |
| Unlevered beta | 1.06 | 1.27 |
| Relevered beta | 1.06 | 1.28 |
| Adjusted relevered beta | 1.04 | 1.19 |
300902.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 300902.SZ:
cost_of_equity (10.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.04) + 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.