300921.SZ
NOVA Technology Corp Ltd
Price:  
25.95 
CNY
Volume:  
2,422,500
China | Diversified Telecommunication Services

300921.SZ WACC - Weighted Average Cost of Capital

The WACC of NOVA Technology Corp Ltd (300921.SZ) is 6.5%.

The Cost of Equity of NOVA Technology Corp Ltd (300921.SZ) is 6.5%.
The Cost of Debt of NOVA Technology Corp Ltd (300921.SZ) is 5%.

RangeSelected
Cost of equity5.5% - 7.5%6.5%
Tax rate7.5% - 8.9%8.2%
Cost of debt5.0% - 5.0%5%
WACC5.5% - 7.5%6.5%
WACC

300921.SZ WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium6.1%7.1%
Adjusted beta0.380.47
Additional risk adjustments0.5%1.0%
Cost of equity5.5%7.5%
Tax rate7.5%8.9%
Debt/Equity ratio
0.010.01
Cost of debt5.0%5.0%
After-tax WACC5.5%7.5%
Selected WACC6.5%

300921.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 300921.SZ:

cost_of_equity (6.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (0.38) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.